Fall is usually the slower season for an automotive machine shop. Business cycles are normal, but a quieter shop does not mean wasted time. Use the season to review the work that moved through your shop during the first eight months. Select ten or 20 completed jobs. Compare each estimate with the actual labor hours, machine time, tooling, materials, outside services and delivery costs. Then ask: Did we make the profit we expected? Pay attention to parts margins. Internet pricing has made customers more aware of advertised parts costs, but the lowest price does not guarantee the correct application, dependable quality, timely delivery or after-sales support. Your shop should be paid for the knowledge, time and responsibility involved in supplying the right parts. Let your customers know why you are worth it. This is also a good time to market. Contact customers you have not heard from recently, visit local repair shops, update your website and social media. Remind customers about the services and expertise your shop provides. This is also a good time to update your pricing. Don’t just wait for business to return. Use the time to build a stronger pipeline for the months ahead.
Steve Rich
Don Gross Warehouse–Sterling Engine Parts
N. Kansas City, MO
