Tips to Keep Your Auto Repair Business Profitable

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Tips to Keep Your Auto Repair Business Profitable

By Zuma Insurance Services | July 18, 2018

How much do auto repair shops make


Operating a successful business is not a job that should be taken lightly and auto repair shop owners know better than most how difficult it can be to make their business more profitable. Just like going to the dentist, many people put off their auto repairs until the last minute in an effort to avoid paying for important repairs. And similarly, running an auto repair shop is a lot like running a dentist’s office in the sense that your customers walk in with a big problem but leave with a smile. While quality customer service should be a top priority in your shop, learning how to make money in auto repair will keep your business open for many years to come. Keep reading to learn more about how you can increase your auto repair shop profit margin this year.

4 Automotive Customer Service Tips to Keep Your Business Profitable

Auto repair shop profit margin

1. Establish a Great Reputation

Take a look around your average California neighborhood and it’s easy to see that people are very protective of their cars. So it makes sense that they don’t want just anyone making repairs on them. With a stellar reputation of providing honest and quality repairs, you are much more likely to see return customers and referrals too. Building trust is key when it comes to creating long-lasting customer relations, so do your best with each new client to demonstrate your expertise, dependability and honesty.

2. Charge The Right Price for Your Services

How much do auto repair shops really make? While offering the occasional sale or promotional prices can be good for business, being the lowest priced auto repair shop in town isn’t the right way to go. In fact, low prices are often perceived to mean you provide low-quality service as well. If you offer quality work, your customers will be happy to pay accordingly.

You know better than anyone that your business can only be profitable when your revenues exceed your expenses. And in the auto repair business, your only real revenue comes from what you charge for parts and services. So make sure your prices accurately reflect the caliber of your work.

3. Invest in a Custom Business Insurance Policy

A comprehensive auto repair shop insurance policy will help to protect your bottom line in the event of an accident at the shop, damage to a customer’s vehicle and other severe losses. Even the most careful and safety-conscious auto repair teams can run into an issue when they least expect it, so why not prepare for the worst without dipping into your profit margin?

How to make money in auto repair

4. Tap Into New Technology

With new online scheduling, your customers can easily access your business calendar and request appointments at their convenience. This seemingly simple change to the way you interact with customers has many advantages. Most importantly, it eliminates the time-consuming task of scheduling appointments by phone, giving you more time to focus on other important aspects of running a successful auto repair shop.

Learn How to Make Money in Auto Repair

As you look for new ways to keep your business thriving, keep these key point in mind:

  • Your reputation is everything, so make sure you’re showing each customer how much honesty, dependability and expert service mean to you!
  • Low prices may seem like a good idea but in reality, customers think they equal low-quality service.
  • Protect your business assets with a comprehensive insurance policy.
  • Don’t be afraid of new technologies that are designed to make your job easier!

Want to learn more about the benefits of total insurance protection for your auto repair shop? Contact our independent agents at Zuma Insurance today to learn more about our coverage options and be sure to get a free quote.