Increase Profitability Using Software for Shop Management

Efficiency in the quick lube, car wash, and automotive repair business is the key to increased customer retention and profitability. Many shops, especially small and medium businesses, do not fully understand the positive impact software for shop management can have on the bottom line.

Shop management software is constantly being improved, and additional features are being integrated. No longer is software used only for maintaining parts inventory.

Eliminate Manual Labor

Businesses cannot be run effectively with accountability, and accountability is tracked in reporting. In the past, the only way to get the reports needed to run the business was through manual data input. Tax preparation is a good example. Accounting systems can be integrated into shop management systems. The days of handing an accountant a box of repair orders and receipts are over.

Many shops are still using spreadsheets to track their performance. Spreadsheets are effective, but they do not allow for the production of the detailed information that the shop owner needs when looking for ways to improve the business and increase profitability.

An effective shop management system highlights areas that need attention.

Management System Basics

Even a rudimentary system is an improvement over traditional ways of doing things. Modern systems help management to:

  • Track Profitability: Shop management software is used to track the areas where sales come from and the profitability of each “profit center.”
  • Track Technician Productivity: Management software is used to track the work done each day by each technician. With this information, management can get an insight into employee productivity and the percentage of profits on labor content.
  • Parts Ordering: Computerization of inventory is necessary. Complete knowledge of the on-hand inventory, open orders, returns, costs, and cost changes are all controllable.

When you introduce shop management software into your business, you must change the way you work. To make the introduction of new technology useful, everyone involved must restructure the way they work.

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