Automotive & HD Business Management Articles.
Bob Greenwood. September 27, 2012. ( over 8 years ago ) 1,462 views
As professional technicians, you’ve learned that the quality in equipment cannot be compromised in order for you to execute properly on behalf of your clients. The information and measurements must be complete and accurate.
We all acknowledge that, however, what type of instruments do you have to control the measurement of your business?
When the right “equipment” is not in place and you do not believe in what you are seeing, it’s like an airline pilot flying through the clouds when coming in for a landing. The pilot must totally trust the instruments over his visual perspective and instincts and if he doesn’t, the likelihood of a crash could be high.
When measuring your business results, make sure you have quality and accurate information. Make sure it is information that tells you just how the business is doing and where the weaknesses still lie. Just measuring sales and activity and then looking at your bank account balance does not tell you how your business is really doing. Ever had a month where sales activity is way up but you still lost money? The bank account is still overdrawn?
Measuring activity just tells how “busy” you have been. You really don’t want to be busy, you need to be steady. A shop today is in the knowledge business and it is the billing of your knowledge (labour) that will increase profitability and help you measure true productivity.
The labour component is an incredible topic just on its own and yet most shop owners spend more time trying to save a business based on the price they pay for parts and other commodities. They have not stepped into the modern world of vehicle maintenance and diagnosis. They bought themselves a job with their style of thinking compared to being a business entrepreneur who grows a profitable enterprise.
Take the time to truly learn the details of measuring and managing the labour revenue category of your business and I believe you will be shocked at what you have left on the table from your current business coming through the door. The opportunities are huge today compared to 10 years ago, however, a different perspective with different business “instruments” must be embraced. Just get your head into it and go for it…I’m confident you won’t look back!!!