As an independent auto repair shop owner you know your labor rate, but do you know your effective labor rate? Understanding the difference may be the key to truly running a successful shop. What is Effective Labor Rate? Your effective labor rate is the actual hourly revenue you generate from labor charges, taking into accountContinue reading “Auto Repair Shop KPI’s Explained: Effective Labor Rate”
Category Archives: Shop Management
Why Automotive Businesses Fail
In the highly competitive world of automotive repair, success is far from guaranteed. Research from the Small Business Administration (SBA) shows that roughly 30% of small business fail within two years; with that number climbing to over 50% by year five. While there are numerous factors contributing to these failures, the good news is thatContinue reading “Why Automotive Businesses Fail”
Trust Signals: What Makes Customers Choose One Shop Over Another
In the ultra-competitive landscape of auto repair, independent shop owners face a crucial question. What truly influences a customer’s decision to choose your shop over the one down the street? While there are a variety of factors, numerous studies show that trust is the determining factor in customer acquisition and retention for automotive services. Let’sContinue reading “Trust Signals: What Makes Customers Choose One Shop Over Another”
How to Improve Customer Retention
Applying the Ritz-Carlton Way to Automotive Service As an independent auto repair shop owner, you’ve probably noticed that some customers become loyal regulars while others disappear after a single visit. The difference between these two groups isn’t just about the quality of your work, but it’s about the entire customer experience and how well youContinue reading “How to Improve Customer Retention”