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Data-Driven Expansion: Your Roadmap to Multi-Shop Success

The article "Data-Driven Expansion: Your Roadmap to Multi-Shop Success" by Benjamin Johnson, published on July 17, 2024, discusses how automotive businesses can leverage data analytics and insights to strategically open and manage multiple auto shop locations, exemplified by Metro Motor's success in standardizing 19 shops and increasing their average repair order to $800 using Tekmetric's platform.

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Thought Leadership

Next Level: Using Data to Open a New Auto Shop Location

Benjamin Johnson

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July 17, 2024

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Read time: 4 min

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Latest Posts

Reading the ARO Gaps Among Your Shops

How to Deliver a Consistent Auto Repair Customer Experience Across Every Location

Auto Repair Platform Features that Actually Matter

Grow Every Multi-Shop Location

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https://www.tekmetric.com/post/next-level-using-data-to-open-a-new-auto-shop-location

Within an auto repair shop, data serves many functions: streamlining day-to-day operations, helping service advisors and tracking a shop’s cash flow. But you can also harness the power of data to plan for the future. In fact, strategically leveraging data can help you determine when it is time to open a new location. Think of it as your roadmap to multi-shop success. Data helps you every step of the way, from optimizing your existing business, to creating a plan for a new shop, to maximizing workflow across all locations.

Looking at the Big Picture: The New Location Roadmap

When you start planning for a new location, your strategy should prioritize the big picture of your business, allowing you to strategically determine the process for opening the next shop. Key metrics and analytics can help you monitor your business performance and plan for both the long- and short-term future. Whether you are expanding for the first time or the tenth, leveraging data can help make the process smooth, strategic and simple. It’s as straightforward as 1… 2…3:

1. Getting Started: Make Your First Location the Best It Can Be

Before opening a new location, ensure your existing shop is optimized. Your goal is to maximize efficiency and productivity, so you can replicate the process at a new location. Take a good, hard look at your numbers, and be honest with yourself about your business performance. Some key questions to ask include:

  • What are your ARO and car count, and can you increase them?
  • How many repeat customers do you have versus new customers?
  • How effective are your mechanics at completing their work?
  • Will adding another mechanic or bay be enough to support my current levels of business growth?
  • How frequently are customers approving your full estimate or returning for follow-up work on previously declined jobs?

Once you have determined that your existing business is performing at the highest level possible, you are ready for the next step.

2. Creating a Plan: Determine Criteria for Your New Location

As you look to add a location, it is important to identify your business needs and the assets you have available. Data from your existing location(s) is key to this step. Not only can you analyze business performance to determine your financial ability to open a new shop, but you can also identify opportunities with new customers to target or niche services to offer.

For example, if your existing location is overwhelmed with customers seeking same day or next day service, another shop might be the solution. Or, if you are targeting customers in a different area of town, building or buying another location closer to the population you are targeting might draw them in. Here are some questions to ask when determining the criteria for a new location:

  • Have I maximized the efficiency of my existing location(s)?
  • Can I afford to build a brand-new shop, or should I buy an existing business?
  • What is my close rate at my existing location(s)?
  • What demographic am I targeting, and how can I meet their needs with this new location?

3. Setting Up for Success: Use Tekmetric Multi-Shop to Maximize Workflow

Once you have multiple locations, it is critical that you maximize workflow between all locations. You can compare locations using Tekmetric Multi-Shop to monitor performance, track key metrics and determine each location’s strengths and weaknesses. A good question to ask yourself is: how can I leverage each location’s strengths to support continued business growth?

First, ensure that you have replicated the optimized processes from your original location(s) at the new shop. You have worked hard to ensure your business was performing at the highest level possible before opening a new location – make sure to keep that momentum moving!

Second, play to the strengths of each location so they support each other. For example, determine which locations are high versus low volume to maximize your technicians’ time at all locations. If one shop is a high-volume location overwhelmed with work, you can leverage a lower volume location by moving some cars there for same-day repairs. Just don’t forget to move the cars back to the original location for the customer’s convenience!

The idea of multiple auto repair shop locations can seem daunting, but by maximizing your data, you can simplify the process to ensure you are prepared for the next step. First, put all your efforts into running a top-tier business with your existing location(s). Once you are satisfied with your performance, utilize data to establish a clear plan for opening your next location. Finally, use tools like Tekmetric Multi-Shop to maximize workflow and leverage each location’s strengths to support the overall business. This approach will maximize your productivity and efficiency across all your locations, increasing your overall bottom line and keeping customers satisfied.

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Tekmetric has remained committed to 2024 as a year filled with product innovation, providing updates that included feedback from our customers to demonstrate our commitment to a customer-centric approach as we continue to grow. From product updates and attending industry events to elevating our approach to data security, the second quarter has built on the first quarter’s momentum, leading to a vibrant first half of 2024.

Supporting Shops by Enhancing Efficiency

Tekmetric is systematically seeking opportunities to better understand the needs of shop owners and how our product can help shops run more efficiently. Building on our commitment to enhancing shop effectiveness, we focused Q2 on implementing updates that significantly bolster operational efficiency across the board.

Having the right technical team is essential, and with our latest update, shops can now assign multiple technicians to a single job, ensuring greater collaboration and efficiency. This update allows more experienced technicians to supervise staff technicians regarding more complex jobs, giving staff technicians an opportunity to experience hands-on learning. Overall, having multiple technicians on a single job improves efficiency by allowing you to align and prioritize your technician resources.

In addition to the multiple technician updates, we also released the Inventory Activity Feed. To ensure smooth operations and profitability, it's crucial to understand the flow of money. Inventory plays a necessary role in this process and with this update, shop owners now have an extra eye to spot inconsistencies in pricing and quantity. This new feature allows shops to monitor key changes made to parts inventory, identify and rectify errors and enhance operational efficiency and employee training initiatives.

As we move into Q3, we continue to strive for further updates that increase productivity within internal operations or streamline the customer experience from the first touchpoint until repair completion and beyond.

Commitment to Education and Learning Opportunities in the Industry

In an industry as complex as auto repair, there is no shortage of learning opportunities to improve your shop or learn how to incorporate customer feedback into our ongoing improvements.

At Tekmetric, we value a commitment to growing our knowledge base and sharing that with our peers at various events, whether it be in-person conferences or through webinars. Our dynamic duo John Phelps and P.J. Leslie attended WorldPac STX in Nashville, Tennessee in late April to share with repair shops key strategies to boost profits through enhanced customer experiences. Their presentation included leveraging digital tools and enhancing the digital buying experience, transforming buyer trends into revenue drivers and customer retention through excellent experiences.

From there, P.J. had two additional speaking opportunities at Thoroughbred Diesel in Winchester, Kentucky and AASPA Tools in Harrisburg, Pennsylvania in the month of May where he presented on How Customer Experience Can Change An Industry. At both events, he shared his expertise regarding digital purchasing experiences, leveraging trends for revenue growth, mastering customer retention strategies, and surpassing expectations of the CX generation. Additionally, John Phelps, made an appearance on the Changing the Industry podcast where he discussed Career Shifts and Setting Industry Standards. At Tekmetric, we believe that the desire to give and improve the lives of our customers is ultimately what will drive your business to reach its full potential.

We participated in the ASI & ASTA Summer Social in Apex, North Carolina which provided an opportunity to network and connect with shop owners and tire dealers from the area. Our participation at these events helps us better understand your needs, fueling our commitment to product innovation and excellence in customer experience.

Tekmetric also aims to support our shop owners in sharing their own insights and lessons about measuring up in today’s industry through the webinars that we host. This quarter, we hosted a webinar entitled “Confessions of A Shop Owner,” which included Travis Troy, owner of Honest Wrenches, along with Ward Myers, VP of Training and eServices at Advance Auto Parts, Gregg Rainville, SVP at Steer, and Ian Miller, Partner Manager at Tekmetric. The key points were all about defining and developing shop culture and leveraging technology to be more efficient in the auto repair space.

Prioritizing Data Security

We recently increased our benchmark in data security by earning SOC 2 Type II compliance. Tekmetric meets the five principles that are required which include: security, availability, processing integrity, confidentiality and privacy. With SOC 2 Type II compliance, we are able to keep any information that you put into Tekmetric secure, from your shop’s data to your customers’ information. This gives us more confidence that as we continue to improve the quality of Tekmetric, we are also ensuring the security of everything that is entrusted to us.

Keeping Our Foot on the Gas

As we close out the first half of the year, Tekmetric aims to use our customer-centric approach as the fuel that ignites our product innovation. Through our commitment to attending industry events and listening to customer feedback, Tekmetric meets its customers where they are, with constant plans to keep innovating and improving. We head into Q3 with our customer-obsessed mentality to continue improving and streamlining shop operations with Tekmetric.

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Going a step further, there's an opportunity for shop owners or general managers to help create a culture within your repair shop that not only boosts productivity and maximizes efficiency, but rewards success and contribution as well!

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Your automotive shop's service advisor plays an important role in the overall operation and even growth of your business. The service advisor explains maintenance and service needs to customers, and answers their questions in detail. The success of your business relies on having the right people in these roles and supporting them with necessary skills training.

To find the best candidates, look for people with potential or training in these areas:

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