Three keys to preparing your business for the new year

Mid adult manager and car mechanic talking while using computer in auto repair shop.

By Eddy Pineda

Another year  is coming to an end, and while you may be getting ready for the holiday season, you should also be reviewing your business to prepare for the new year. Taking a closer look at your shop now can let you make the most out of your new year’s resolutions. Here are three items you should review before the end of the year.

Examine labor hours and rates

When was the last time you took a look at your hourly shop rates? Most new car dealerships review their hourly labor rates on a yearly basis, and it’s important that independent repair shops do the same. You should examine how many hours you’ve billed at each one of your existing labor rates, plus the average number of hours per repair order.

Your review doesn’t have to result in raising your hourly rates but keeping track of billed labor hours provides insight on your shop’s efficiency as well as helping you with future scheduling.

Labor rates will vary greatly across the country, but one thing that remains consistent is shops under-charging for diagnostic work. As we all know, diagnosing a vehicle can easily be the most frustrating and difficult part of auto repair. This is why it’s important to …

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