QuickTrick Shop Talk – Profit & Fluids
Liquid Loss or Profits? Are your fluids fluid?
We all know that vehicle fluids are important, but most shops aren’t equipped to capitalize on service and profit in this arena. When you think about the variety of services to offer are you considering every angle?
All these needs’ special procedures and equipment, but not every shop can afford to have the supplies in every bay. If you can, that’s great, if you can’t, get strategic!
Fluids are something obvious and common, yet they often go missing in a conversation on potential profitability. Most shops are missing a big opportunity that has nothing to do with getting new customers in the door. Simply adding services to every customer that arrives can greatly increase your shop potential.
Checking and managing maintenance on fluids is something that can and should be done on every customer. You can check out this handy analysis from Bob Greenwood Amam below. Calculate how many customers you see a month and add your own numbers to see what is missing and what can be gained.
It’s a new year and a new decade. Let’s start it out on a positive note and keep those profits rolling and those customers riding!
Analysis: (Estimates only. Your costs may be lower or higher depending on volume)
You can download this spreadsheet and punch in your own numbers here: Fluids Analysis <<Click here to download
|FILTER & GASKET||SHOP COST||RETAIL||PROFIT||AVG ANNUAL CUSTOMERS||TOTAL PROFIT|
|LABOR (1.7 X 28)||$93.44||$191.67||98.23||600||58938||58938|
|TOTAL ESTIMATED ANNUAL PROFIT||$86,442.00|
|Equipment Purchase Price|
|Average lease Price|
|$170 month x 12 mo’s||170 x 12||$2,040.00|
Of you consider the recommended transmission flush is every 50,000 miles and look at 600 ongoing clients a year averaging 11,000 miles
600 x 11,000 /50,000 = 132 flushes @ $98.23 = $12966.36
If you lease the equipment at $2040.00 annually that gives you a net income of $10926.36 without adding personnel or increasing your customer base. That is a hefty increase and only covers the opportunity with one set of vehicle fluids.
Keep in mind that most people do not want to deal with the fluids themselves because of disposal issues and requirements. Not to mention down time.
It’s a good idea to have postings up stating your shop disposes of all fluids in an environmentally friendly manner. Another posting beside it should state your community standards for disposal of hazardous fluids and fines or penalties. This is a friendly reminder to your customers that a professional shop like yours is much better equipped to do the job responsibly and at a reasonable rate.
We hope this information helps you on the path to greater shop revenue this year! Thanks for being a part of our QuickTrick family!