How Working Capital Will Benefit Your Auto Repair Shop Now and Later
With so many options in the automotive world today as you read this article there are over 10 generations of cars with endless styles, colors, engines, transmissions, technology, engine placements, suspensions, aftermarket and OEM parts it is easy to see how one can become obsolete in the industry…And fast.
Working capital will allow you to get the funds needed to not only cover regular operation costs at the moment but more importantly allow you to invest in the next generation of technology required to keep up and thrive along with this fast paced industry. Everyone knows that a simple set of Snap-On tools and a hydraulic lift will get the job done with most vehicles on the road but is that where the money is? Not really.
The name of the game is Time vs Job vs Value. What jobs CAN you do, how much is your time worth to you and is it worth it for the customer. All repair shops can diagnose, repair and even modify most cars. But can your shop replace the timing chain on a Jaguar or Land Rover? As you may or may not know this requires manufacturer spec made kits and tools which range in total between $1,500 – $2,500 alone. This includes manufacturer made tools like a sliding hammer, Jaguar/Rover crank pulley remover & installer, Jaguar/Rover crankshaft holding tool, custom Jaguar/Rover bolt sockets, etc. This is a job that can fairly cost over $2,500 to any customer for those 5-8 hours of labor which is hardly any different than the job you will do for a Honda Civic charging $500-$1,000.
Then the old saying applies “rinse, recycle, repeat”. Now you have the ability to accept and promote this new service which yields a much higher profit for the same amount of effort and still work on the Hondas, Toyotas, etc. that regularly flow through the shop. So the question now is how much longer will you let this over-inflated fear of interest rates and supposedly paying “too much” to get funds you need NOW before you realize that the money you are losing on a daily or even hourly basis is what will ultimately be your professional demise?
VIP Capital Funding specializes in consulting businesses in many industries including automotive repair and we want to help you maximize the potential of every square foot of your shop and maximize the value of every tool in each technician’s hands, tool box and shop floor. Call or email us for a complimentary consultation and application and put us to work for you.