According to the Bank of England (BoE), the UK is now in the grip of a recession, while this could extend into the region’s longest ever economic contraction by lasting for up to five consecutive quarters.
This is a dreadful prospect for businesses, especially those that continue to count the cost of recession and experience the fallout from the coronavirus lockdowns.
For such entities, it’s crucial to focus on saving costs without impacting productivity. But how can you achieve this objective if you own and operate an auto repair shop?
How will the recession affect auto businesses?
This recession is unique in some respects as it is primarily being driven by rampant inflation, which has had the impact of diminishing consumer spending and economic growth while driving up costs at auto repair shops nationwide.
This is evident in both the US and UK, with the Department of Labour in the former country reporting that motor vehicle repair parts and equipment have seen their cost increase by 15% through 2021 (the highest such increase since 1974).
This is the result of both rampant inflation and global supply chain issues, with many auto repair shops having little choice but to pass these additional costs at least in part onto their customers.
So, although businesses are initially impacted in the event of an inflationary recession, it’s customers who also have to help pay the price over time.
How to save in your auto repair shop?
The obvious impact for businesses is in the cost of labour, materials and equipment, that is why investing in quality and long lasting equipment like the various Milwaukee tools used to repair vehicles is crucial to avoid extra spending in the long term. Reducing such costs where possible is key, as long as it doesn’t impact on quality or your ability to work effectively.
The question that remains, of course, is what other practical steps can you take to make savings at your auto repair shop? Here are some considerations to keep in mind!
1. Unplug your appliances: According to the Energy Star resource, some 75% of electricity is used up while devices are not being used an in standby mode. While other estimates put this number lower, there’s no doubt that this consumption represents a costly waste, so we’d recommend switching all of your plug sockets and power strips off when they’re not in use, and particularly before you leave at the end of the day.
2. Shop around for the best energy deal: Energy prices have spiralled for both households and businesses since Russia invaded Ukraine, and this is a huge concern for auto repair workshops.
So, in the current climate, it’s more important than ever that you shop around for energy and electricity and compare the market, using favourable quotes to negotiate with providers and continually drive down costs you land on an agreeable deal.
3. Do your own advertising and target local customers: While it’s easy to access advanced marketing campaigns that promise the earth, the key to achieving value for money as an auto repair shop is to target local customers within a predetermined catchment area.
This helps you to identify and target qualified leads who are likely to use your service, enabling your streamlining and simplify your advertising strategy while subsequently saving money!