Auto repair shops are customer service-oriented. Many of these businesses also employ highly trained technicians to perform repairs and maintain vehicles. However, the current technician shortage continues to challenge these businesses. In fact, according to the Center for Automotive Research, finding qualified technicians is ranked as one of the top threats to the automotive repair industry. The shortage is due to a combination of factors including entry-level compensation, challenging working conditions and limited employee development.
To combat the tech shortage, forward-thinking shop owners have started reexamining how they compensate their employees. Some have replaced flat-rate pay models with production-based incentives to compel employees to be efficient and productive. This model can help to reduce overtime costs while ensuring that customers continue to receive optimal turnaround times on repairs.
In addition to implementing a new compensation strategy, some automotive repair shop owners have begun offering perks like free diagnostic services. These offerings can help to drive new business and improve customer retention. They can also increase the likelihood that a customer will return to your shop for additional repairs in the future.
Another way to differentiate your shop is to specialize in a specific area of vehicle maintenance or repair. For example, some mechanics have added air conditioning and suspension work to their repertoires. Suspension systems put up with a lot of abuse on the road and are often too complex for drivers to fix themselves. And air conditioning systems are necessary year-round in some parts of the country. To offer these services, your shop needs to have specialized equipment and the right EPA refrigerant handling certifications.
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