Summer is a busy time in the auto repair industry, and 2020 was no exception.
But as the seasons change to fall and winter, we notice that fewer people are taking their vehicles in for repairs. Of course, this varies from state to state. Auto repair shops in colder climates may still see a steady flow of customers as drivers winterize their vehicles.
In most places, a slow down in business is to be expected.
While there may be fewer walk-ins, there are several ways shop owners and service writers can stimulate business and maintain a healthy sales funnel.
Looking at Your Sales Funnel
Your sales funnel can tell you a lot about the flow of your business.
Before ramping up marketing and lead gen tactics (strategies to get new business into the sales funnel), it’s important to look at what’s already in the funnel.
If you already have work in the shop or customers to follow up with, those jobs are going to be the easiest to target and move through the sales process because they’re already halfway there.
Also, by focusing on the bottom of the funnel first, you can identify any hold-ups and make room for new work to come in the door, leading to a more efficient workflow and overall sales process.
Work in the Shop Waiting to Be Completed
Before going out of your way to bring new business in the door, look at the current jobs already in the shop.
Are there any holdups? If so, be sure to take care of those so that you can get those vehicles repaired and out the door, and then collect payment on that work.
If there's a bottleneck at the bottom of your funnel, you probably want to address that before bringing a bunch of new work through the door.
Tek-Tip: Use Realtime RO Reporting on the Shop Dashboard
By looking at the “job board view” of Tekmetric’s shop dashboard, shop owners and service writers can see a snapshot of what’s going on in the shop at any given moment.
You can look at the number of dollars you’re sitting on in the “work not started” status.
If an RO has been approved but the work hasn’t been started and you’re not sure why this is a good opportunity to talk to your technicians to see what the holdup is.
If it seems like there are many jobs that are delayed, it might be time to consider hiring more help, provide coaching, or create a more efficient process.
Customers with estimates waiting to be approved
After taking care of work that’s already in the shop, the next easiest target for more work is going to be anyone who you’ve already sent an estimate to that hasn’t approved the work.
Chances are, these guests are shopping around for the best estimate. But in some cases, customers get sidetracked and may have simply forgotten to follow up.
Giving these folks a courtesy call to say, "I just wanted to follow up to personally answer any questions that you may have about the work that we're recommending" is a great way to earn their business because it shows that you care about fixing their problem and that you didn’t forget about them.
Even if your shop isn’t the cheapest by a long shot, customers who are shopping around are likely to see the value in going with the shop that is attentive enough to give them a call back to check-in.
Tek-Tip: Use the Tekmetric Job Board to See the Status of Estimates
Tekmetric’s job board uses icons to show service advisors the status of an estimate.
The paper airplane means that an estimate was sent to a guest, but it hasn’t been opened.
Once the customer opens the estimate, the icon will change into an eyeball. Near the icon, it will also tell you how long ago it has been since the estimate was sent or viewed. Service advisors and shop owners can use this information to start a conversation with their customers.
Tekmetric also has two different views of the job board: column view and list view.
In list view, you can prioritize the order of those estimates to put the people who have viewed it at the top, the people who received it next, and then everyone else who you haven't quite finished up with at the bottom.
So now you have a priority of who you can start calling.
Declined Jobs & ROs Saved for Later
Further up the sales funnel are your declined jobs and ROs saved for later. It’s important to remember that many vehicle owners wait until right before a critical event to get their vehicles repaired.
For instance, if someone brings their truck into the shop to fix their suspension and you notice that their brake pads should be replaced soon, the customer may wait a few weeks or months until they feel like their brakes are just about to scrape the metal.
Depending on the condition of the brakes, a service advisor might put it on the estimate (and in this scenario, the truck owner declines the job to focus on their suspension) or, if it seems like the brakes do in fact have a few months of mileage left, they may save it as an RO for later.
Declined jobs and ROs saved for later are great ways to reconnect with a guest.
A simple courtesy call to check in with an existing customer who may need work soon is an excellent way to remind them that their vehicle needs maintenance before a critical event occurs, and it's also an opportunity to bring more work in the door.
Tek-Tip: Use Tekmetric’s Declined Job Report and Customer History
Tekmetric’s declined job report consolidates all of your shop’s declined jobs in one easy to view list.
During slow months, your service advisors can open the declined jobs report and go down the list, using notes to determine why the customer declined the job and whether or not they might be interested in revisiting the work soon.
To take this one step further, the service advisor can also look at the customer’s history to determine if there are any hold-ups to getting certain repair work.
For instance, if the customer history shows that they come into the shop frequently but tend to spend small amounts at a time, you can make them an offer or throw in a free oil change to sweeten the deal.
Generate New Customers with Marketing
Once you’ve worked your way up the sales funnel to complete any jobs in the queue and catch existing customers who either haven’t responded to your estimate or need work soon, you can start focusing on catching the attention of new customers.
When it comes to generating new business, the initial questions to ask yourself are, “Where are my target customers?” and “Where is my existing business coming from?”
By keeping track of your marketing sources—referrals, promotions, mailers, social media channels, etc.—you can get a better sense of the best place to put your efforts.
Every time a new customer comes in, it’s good practice to ask them, “How did you hear about us?” If it’s an existing customer, you can also ask, “What brings you in today?”
They may just tell you that they need work done, but sometimes they’ll answer with a certain promotion or advertisement, which can help you gauge the effectiveness of certain efforts.
If it seems like a certain tactic works better than others, that may be the first marketing effort to invest more money in when times are slow.
Tek-Tip: Use Tekmetric’s Marketing Source Report to Gauge the Effectiveness of Your Marketing
Tekmetric’s RO Marketing Source report gives shop owners a clear view of how successful each marketing effort is in terms of total sales, new sales, repeat sales, GP dollars, GP percent, and close ratio.
These metrics not only show you where your audience spends the most time but also shows you which segment of your audience is bringing in the most profit.
For instance, you may notice that Facebook brings in a lot of ROs, but you have the highest close ratio with people who read Yelp reviews.
If that’s the case, you may want to solicit more positive Yelp reviews from customers.
Accelerating Your Shop’s Business Takes a Comprehensive Approach
It’s important to consider your entire sales funnel when trying to boost the amount of work and dollars coming through your shop.
While marketing is a great way to get your name out there and bring new vehicles and faces into your shop, it’s just as important to nurture the relationships that you already have.
If it seems like there’s an existing customer that you can help with service, it’s a good idea to reach out and check in on them.
As always, keeping track of your job history, customer preferences, declined jobs, work in progress, and how your customers hear about your business is going to make it a lot easier to make calls and pull the right levers.
While this may seem like a lot to keep track of, a well-organized, easy to use shop management software like Tekmetric can make collecting and reviewing this information feel like second nature.
Unlike traditional auto shops, mobile mechanics travel to their customers to provide automotive repairs and services at the clients home. This service is attractive to older clients who may not want to travel as much or for young professionals who are to busy to wait for their car at a shop. Another major perk is that mobile mechanics can often perform services at a cheaper price because of having lower overhead costs.
Mobile mechanics are not able to perform every repair that a brick-and-mortar shop can as they have to transport all of their tools and supplies with them. However, they can still provide these common repair services:
Oil changes
Diagnostics
Tire rotations/replacements
Filter replacements
Batteries
Spark plugs
Alternators
Brake service and more.
How profitable is a mobile mechanic business?
Mechanics can charge whatever they would like but most repairs fall in the $20 - $125 per hour range. Like any business, you have to consider your startup costs, advertising expenses, number of expected clients, and how much your services are worth before determining if your business will be profitable. Overwhelmed yet? Dont worry, we will explain everything in detail below.
6 Steps to become a mobile mechanic
While you may not need a college degree to be a quality mechanic, you will still have to invest in tools, licensing, marketing and other business needs. We have outlined everything you need to start your business below.
Develop a Business plan
Starting with a quality business plan for your business is the first step in making sure you start off on the right foot. Outlining who your competitors are, setting goals and solidifying your financials may seem outdated but they are the foundations of your business. Here are nine steps to creating your business plan:
Write an executive summary
Describe your shop
State your business goals
Describe your products and services
Do your market research
Outline your marketing and sales plan
Perform a business financial analysis
Make financial projections
Create a plan for growth and expansion
Tek-Tip: If you want to jump start your business, consider joining a mobile mechanic business like Wrench.
Gather necessary licenses and certifications
Once you have created your business plan, it is time to start working on your business license. Not every state requires you to acquire a license but some do. Do your research for the state you plan to work in and make sure you are legally ready to open your auto repair shop.
ASE certification: Also known as the National Institute for Automotive Service Excellence. Being one of the largest accreditation organizations, ASE is commonly recognized throughout the auto industry.
Manufacturer certification: Mechanics may elect to gain additional certifications from specific manufacturers (Honda, Toyota, etc.) to add to their credibility. These certifications are also recommended if you only work on certain types of cars.
Refrigerant certification: If you plan to work on MVAC (motor vehicle air conditioners), the EPA requires you to obtain certification in proper refrigerant handling according to Section 609 regulations from the Clean Air Act.
Also, don’t forget to register your business and form the appropriate legal entity (partnership, sole proprietorship, limited liability, or corporation). Each entity has pros and cons, so consult with a legal professional to make sure you are ready to file taxes with the IRS and open your own business.
Set your pricing structure
Your cost per hour or per repair should be reflective of your years of experience, geographical location, types of services performed and competition. Doing some competitor research will help you determine how much clients are willing to pay in your area.
Some mobile mechanics can charge more if they offer premium services or more complicated repairs. If you are new to the area, it may be beneficial to keep your costs low until you have a solid client base. Don’t forget that you can also make money off of part markups.
Lastly, remember to account for inflation, sales tax, parts, and gas for your vehicle. Depending on your payment options, you will also need to account for credit card processing fees. Auto repair can be a seasonal industry (especially in certain states), so make sure to stow away some revenue for slower months.
Insurance coverage
If you are going make an investment in your mobile auto repair business, you need to protect it with the proper insurance coverage. Some of the common insurance plans you should consider include:
Liability insurance
Comprehensive coverage
Fire and theft insurance
Road risks insurance
Lastly, decide if you will be offering any warranties on your services/parts and how that will impact your bottom line.
Invest in quality equipment
Tools: A reliable power source, jack or portable car lift, drain pans, safety equipment, scanners, cleaning sprays, diagnostic equipment and gloves are all important to have on hand. Also, don’t forget a proper lighting source.
Parts: Having commonly needed auto parts in your inventory will save you time rather than waiting for parts to be delivered to you. However, you should also determine how much inventory space you have and how to maximize it.
Software: A cheat code for mobile mechanics is adding cloud-based auto repair software that can help you keep track of inventory, invoices, billing, inspections, marketing, and more all in one place.
Vehicle: Reliable transportation is critical for mobile mechanics. Select a vehicle that has enough storage to accommodate large parts and good fuel economy for longer trips. Lastly, don’t forget to bring shelter in case of inclement weather so you can continue to work in the elements.
Tek-Tip: If you need help coming up with a mobile mechanic business name, we have developed a guide to the best auto repair business names. In addition, we developed an AI-powered name generator tool that can also help with logo creation.
Marketing and advertising
You can offer the best mobile mechanic service in your state but without a proper marketing strategy, customers may struggle to find you. Here are some common marketing efforts that will help you build a strong customer base.
Website: A strong website is the glue that holds all of your marketing efforts together by providing a central location to find prices, services, phone number, and more. Make sure your website reflects what makes you better than your competition. SEO (search engine optimization) is another important factor to include in your website to ensure you are visible to those searching online for your services.
Tek-Tip: Not tech savvy? Tekmetric Marketing can help by offering website building, online scheduling, review management, and more.
Paid advertising: Strategize where your target audience is located and how you can leverage paid advertisements to attract more customers. Possible opportunities include Google ads, social media ads, local event sponsorship and more.
Social media: Social media is a great place to highlight customer testimonials and engage with your audience. Experiment with varying content types until you find what resonates with your customers.
Traditional marketing: Mailers, business cards, flyers, billboards and direct mail can all be impactful marketing tactics for local businesses. Considering adding a QR code pointing users to your website or adding coupons to incentivize customers.
Referral program: Testimonials go a long way for word-of-mouth marketing. Consider offering a discount on future services for each new customer they refer to your business.
Email: Email marketing is a great way to retain existing customers by offering incentives or coupons to ensure your car repair business stays top of mind. Another impactful email marketing tactic is to send oil change reminders to existing clients.
Closing Thoughts
Starting a mobile mechanic business can be intimidating but the flexible working hours, independence and profitability make it worthwhile. Being a small business owner is not for everyone, consider starting out as part time and move into full time as your profitability grows. Don’t forget to utilize your network to learn industry trends and new tactics to grow your business.
When customers walk into your auto repair shop, they’re trusting you and your team with the health of their vehicle, one of their most expensive assets.
They’re coming in with a problem or set of problems and expect your team to effectively fix those problems in a reasonable time frame.
And modern expectations for customer service have shifted as our technology has evolved. Customers don't want to have to find time for a phone call when they can just get texted updates about their repairs, and digital tools make it easier for shops to build transparency in their process.
Modern auto repair shop software not only makes it easy but lays the foundation for a modern customer experience at every step.
Offering a Modern Auto Repair Shop Customer Experience Starts with a Modern Shop Management System
We're big advocates of modernizing your auto repair shop, and we don't necessarily mean replacing all your racks, updating all your compressors, and swapping out your alignment rack. Sure those might help, but we get those can be really big investments.
That's why we're focused on the behind-the-scenes operations of your shop, the overall management and flow of repair orders. Modern shop management software enables owners, managers, service advisors, and technicians to gain visibility into, and control over, their individual part of the process with specific functions:
Cloud-based shop management
Real-time control
Digital Vehicle Inspections
Built-In Payment Processing
Digital Shop Communications
Efficient Parts and Inventory Management
While all of these directly work to modernize your shop operations, they also work to modernize your shop experience for customers.
When your shop is using Digital Vehicle Inspections instead of paper printouts, you're not only making it easier for your technicians and service advisors to communicate and collaborate, but you're also modernizing how your shop interacts with customers, by emailing or texting results and approval requests.
Every element of your team is critical, from the technicians who complete the repairs to the service writers who assist customers and keep repair orders flowing through your shop management system.
They’re the people who are responsible for directly communicating with guests or working on vehicles. They're the core of your everyday operations, ensuring cars are brought in, estimates move along, and repairs are completed on time.
It is absolutely critical for great shops to start with great talent!
With the power of cloud-based shop management systems, auto repair shops can build the best team possible with the right mindset, culture, and approach to hiring and retaining the best talent.
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