The good, the bad, and the unexpected of purchasing an auto repair shop

John Phelps

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August 29, 2024

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Read time: 3 min

Whether you’ve worked in the industry for years as a technician or are considering moving into the automotive industry for the first time, owning an auto repair shop can be a very rewarding experience.

In collaboration with PartsTech, we reached out to our customer, Eric Reich, who purchased his auto shop in 2021, to learn about his experience and share it with you. 

Before becoming an auto repair shop owner, Eric worked for about ten years in the aerospace MRO (Maintenance, Repair & Overhaul) sector and about ten years in the electrical distribution sector. Looking for a change, Eric ultimately jumped into the auto repair industry by purchasing Bennet’s Automotive — a six-bay shop that services all domestic and Asian-manufactured vehicles.

The Dream: Owning his own business

For Eric, working at large corporations for 20 years became too predictably bureaucratic. He felt buried by meetings, paperwork, and slow decision-making. “After spending nearly two decades at corporate companies, I was looking for something I could call my own,” said Eric. “My goal was to be an independent business owner and not rely on large corporations whose only goal was to maximize profits at all costs. I found that independence when I purchased Bennett's Automotive, which has been in business since 1991.”

The Good: Success and positive outcomes

Taking the time to find the right shop 

Eric didn’t want just to purchase the first shop for sale that came across his path, “You can’t rush or predetermine anything. If the shop you are evaluating is not a good candidate, then you have to walk away,” said Eric. During his patient search, Eric found that he very much enjoyed the process of evaluating prospective shops and identifying if they were a good potential candidate to achieve his business goals. 

A dedicated, expert team

From our conversation with Eric, it is clear that he values his team, which stayed on through the change of ownership when he purchased the shop. “I have been consistently impressed and proud of my team's dedication and technical expertise. During the transition of ownership, they did not allow the uncertainty of the situation to impact the quality of their work,” said Eric. Having the right people in place is critical to a successful shop. “I was so lucky to purchase a shop with such a solid existing team.”

The Bad: Challenges and setbacks

A small team naturally results in staffing issues

Eric credits his team with minimizing the level of operational challenges he faced as a first-time shop owner: “Thankfully, I had a great core team when I took over the shop. Without them, the transition would have been much more difficult. You are only as good as your team.”

Though his team is awesome, he quickly discovered that his most significant operational challenge would be staffing: “As a smaller shop, the risk is in quality manpower. If we have a guy out or are operating a guy short, it adds additional strain to the rest of the team.”

The Unexpected: The things that caught Eric off guard 

Time is incredibly precious, and everyone wants a piece of it

“As a shop owner, you have to be careful about your time,” says Eric, “and one of the biggest surprises I encountered was the number of unsolicited calls from random companies trying to sell or sign me up for something.” 

There is a ton of paperwork.

“I did not realize how much paperwork would come with purchasing and owning a shop,” said Eric, “There is a lot!” 

Tips from Eric for anyone interested in purchasing an existing auto shop 

First things first 

Before jumping into the deep end of purchasing a shop, Eric recommends you consider the following first:

  • Be very honest with yourself regarding your goals. Do you want to work in the shop? Be more hands-off? Etc.
  • Be willing to walk away from a bad deal. Don't get attached to any one shop/location. If the numbers don't make sense, don't move forward.
  • Ensure you have enough operating cash. You must have enough cash to handle normal ebbs and flows and an emergency. Not having enough cash is the fastest way to run into problems. (Eric likes to have at least three months of overhead.)
  • Be very thoughtful about overhead. You have to ensure that each overhead line item has a specific and defined purpose. 
  • Take training in basic financial acumen. To be set up for success when starting the journey of purchasing a shop, Eric advises aspiring shop owners to have a strong understanding of business finances such as P&Ls, pricing strategies, and cash flows to evaluate the shop's health. This is important so you know whether or not you should walk away from a deal. If necessary, Eric encourages taking a financial training course first.

It’s not just about the physical tools and equipment.

When purchasing an existing shop that already had a lot of the necessary physical tools and equipment, Eric focused on the software he wanted to implement. He encourages shop owners to evaluate the current software and make necessary changes early in their ownership journey. 

Choose software that drives efficiency and organization and is user-friendly for employees. Also, select software that enhances customer engagement and provides a positive experience.

“Generally, you must streamline your operations and communicate effectively with customers. We use Tekmetric as our shop management software for efficient workflow and customer communication. It also integrates with software such as PartsTech, which allows us to quickly source, price, and order parts from multiple vendors. This efficiency helps our small shop operate as lean as possible, speeding up vehicle repairs.”

Put a big focus on building trust with customers

One of the big reasons Eric wanted to upgrade the shop's software when he purchased it was to have better tools to help build customer trust. “We transitioned to Tekmetric from an older legacy program that made communicating via text/electronically almost impossible. We get consistent customer feedback that they like our new system and communication method with our ability to send inspections, images, videos, estimates, and invoices digitally.”

Closing

Purchasing an auto repair shop is a significant step that requires careful planning, honesty about your goals, and a strong understanding of the business's financial and operational aspects. 

As Eric's journey demonstrates, having the right team, investing in efficient software, and being prepared for unexpected challenges are crucial for success. If you're considering this path, take the time to evaluate your options thoroughly, seek out the necessary training, and build a solid foundation for your new venture. With dedication and the right approach, owning an auto repair shop can be an incredibly rewarding experience.

👉 Ready to grow your automotive business? [Book a personalized Tekmetric Demo Here]

FAQ

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In the auto repair industry, where customer trust and satisfaction are paramount, leveraging customer feedback is an invaluable strategy for improving shop performance. As technology improves, customer expectations for service quality and transparency continue to rise. Fortunately, shops can actively seek, analyze and act upon customer feedback to better position themselves to meet these expectations, enhance their service offerings and build long-term loyalty.

Customer feedback is a powerful tool that, when leveraged effectively, can lead to enhanced customer satisfaction, repeat business and a stronger reputation in the marketplace. As the industry continues to evolve to meet the needs of its customers, auto repair shops that prioritize and act on customer feedback will be better equipped to rise to these standards, thrive and succeed.

Know your audience in the modern industry

Today’s customers are increasingly more digital. In the past, auto repair shops relied on phone calls as their primary form of communication. In the modern market, however, digital communication like email or text messaging has become the preferred type of communication for most people. In fact, 91% of texts are opened within the first three minutes after receipt, with 81% of Americans texting regularly. Ultimately, the best way to get ahold of your customers is to cater to their preference – so ensure you know your audience’s preference and offer solutions that help meet their desired communication style.

Furthermore, the modern landscape of the customer experience emphasizes convenience. At the click of a button, you can have groceries delivered or receive an item within two days of ordering it. Long wait times and visiting brick-and-mortar stores to purchase items is no longer the only way customers can buy things. The same applies in auto repair shops. With this knowledge, you can implement digital solutions to make the customer experience more convenient, thereby increasing loyalty and ensuring your customers return time and time again.

Collect feedback on your shop’s customer experience  

Once you understand your audience in general, you should also strive to understand their experience with your business specifically. It’s important to foster a two-way relationship with the customer and give them the opportunity to share direct feedback. This can help you gain insight into the customer experience, including your shop’s strengths and pain points for customers, so you can adjust and improve.

Tracking feedback is just as important as tracking your shop’s internal operations or financial performance. You can gather feedback through multiple avenues: Google reviews, post-service surveys or even in-person conversations. Each option offers customers an opportunity to share their thoughts on areas where you perform well or bottlenecks that need to be addressed. 

Digital tools can help monitor all forms of customer feedback. Through Tekmetric, you can integrate with a variety of solutions to monitor and respond to feedback via Google reviews. Or, to help drive your customer experience and gather feedback, you can utilize Tekmetric’s Smart Jobs feature to create estimates within one click, allowing your service advisors to spend less time on manual labor and more time cultivating strong customer relationships. 

Leverage feedback to improve shop performance

Customer feedback is critical because it addresses your shop’s bottlenecks from the perspective of the vehicle owner. For example, some shops may include parts ordering and inventory tracking among service advisors’ responsibilities, in addition to taking care of the customer. At Tekmetric, we’ve found this creates many opportunities for miscommunication between the technician who needs the parts and the service advisor, leading to a delay that affects the customer. To solve this problem, we created our Inventory Orders feature so technicians can easily order the parts needed. This ensured better accuracy within the shop and a greater customer experience.

Customer feedback also highlights the importance of convenience when it comes to driving loyalty. For vehicle owners, convenience is not always about choosing the closest shop. It is about choosing the shop that will make their life easier. For example, digital payments solutions can create a more convenient solution for customers. With Tekmetric’s two-way texting and text-to-pay features, customers can pay from their desk or their home office, pay for their college kid who lives in a different state and even pick up their vehicles after regular business hours.

Implementing customer feedback cultivates a stronger connection between your shop and your customers. Through open dialogue, feedback creates a two-way relationship that allows you to address customer needs effectively and improve shop performance. Customer feedback can also help address bottlenecks and streamline processes in your shop, leading to enhanced customer experiences, increased loyalty and, ultimately, a healthier bottom line.

Leveraging Customer Feedback to Improve Shop Performance

September 27, 2024

Read time: 3 min

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Let’s start off by laying down the foundational launching points for starting your original shop: you found your niche, you got the right advice, you started with the right branding, and you impressed your customers by providing exceptional customer service. But there are four key factors that become extremely important as you go from being a single shop owner to a multi-shop owner. 

‍You’ll want to:

  1. Stay organized as you scale
  2. Create consistency across your locations
  3. Test the performance of each of your locations 
  4. Leverage an automotive repair software that will support your team as you grow across multiple locations 

To select the management tools that will catapult your multi-shop owner journey, you’ll first need to weigh the pros and cons of each of your shop’s processes and procedures.

From there, you can find a system that will uphold and scale the processes that made your shop so successful in the first place, but now across multiple locations. Later in this article, we’ll specifically dive into automotive repair software like Tekmetric and discuss how it supports you, your team, and your customers as you go from a single shop owner to a multi-shop mastermind.  

Here’s how to choose an automotive repair software that makes it possible to grow and easily manage multiple shops. 

At Tekmetric, we understand that data security is more than just a priority—it's a responsibility. That’s why we are excited to announce that Tekmetric is now ISO/IEC 27001 certified! Combined with our SOC 2 Type II certification, this achievement underscores our commitment to keeping customer and partner data safe and maintaining systems that operate at the highest standards. 

What is ISO/IEC 27001?

ISO/IEC 27001 is the internationally recognized standard for Information Security Management Systems (ISMS). It represents a comprehensive framework for managing and protecting an organization’s information assets, ensuring confidentiality, integrity, and availability of data.

To obtain this certification, Tekmetric went through rigorous audits and a thorough examination of security protocols, risk management practices, and data protection measures.

As we continue to innovate shop management solutions to best support our customers, achieving this certification reinforces that our platform and internal workflows protect the highly sensitive data customers and partners trust us with. 

What This Means for Tekmetric Customers

For Tekmetric customers, achieving ISO/IEC 27001 certification means you can trust that we adhere to the highest standards for information security. 

  • Enhanced Data Security & Trust: Our certification guarantees that Tekmetric has stringent security measures in place to safeguard sensitive data, including customer information, financial records, and business data. 
  • Reduced Risk of Data Breaches & Security Incidents: By adopting a proactive approach to risk management, Tekmetric minimizes the likelihood of security breaches and disruptions
  • Compliance & Regulatory Alignment: Our ISO/IEC 27001 certification helps customers demonstrate compliance with data protection regulations, such as GDPR and CCPA. 

This certification reinforces our commitment to safeguarding your data, providing you with peace of mind and confidence in our Shop Management platform. To learn more about all our certifications and our commitment to security, visit our Trust Center.

Tekmetric Is Now ISO/IEC 27001 Certified

February 27, 2025

Read time: 3 min

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