Running a garage business can be pretty expensive. When times are good this can be easily offset by your income, but how do you manage to get by when times are tough for your business? It happens to us all. For one reason or another every business goes through periods where the till isn’t ringing as regularly as it used to. It’s how you handle these setbacks and problems that often decide whether your business sinks or swims though.
In the garage repairs industry, you’re heavily reliant on the health of the wider economy. So when times are good, make sure you store some cash away for a rainy day. You won’t regret it if there’s another recession a few years down the line. Having said all that, cars are always breaking down so good, reliable mechanics and garages will always be in demand to some extent, even in the worst of times.
All businesses need to be constantly checking their expenditure. This lets you see where money is being wasted. You need to save money wherever you can in order to keep your head above water. This guide should give you some much-needed tips on where your business can save cash.
Buy in Bulk
If there are some products and materials that you use every day, which there should be in a garage, then make sure you save as much money as possible when you buy them. The best way to do this usually is to buy in bulk.
Try your best to cut out middlemen where possible, they’re an unwanted extra expenditure. Once you find the right deal for your business, you’ll be able to save a great deal of money on materials. Don’t forget, by buying in bulk you’ll be saving money on transportation costs as well.
Take Advantage of the Internet
The internet is a great money saving tool for any business. You may think that if you’re fixing cars all day, there’s nothing the internet can offer you. But you’d be wrong. Bringing in customers is much easier online. Use social media and online advertising when you’re planning your marketing campaigns.
There are also a lot of online time-saving devices. Try storing your files in the cloud so that you can access them and search through them quickly. It’s a lot more efficient that using stacks of paper and physical files.
Get Good Suppliers
When you’re repairing cars, you’re at the mercy of your suppliers. You rely on them for virtually everything you do. This is why it is key to find a good supplier. And once you’ve found one, hold onto them and make your business relationship solid.
Good suppliers get you the best price possible, and that means you could potentially save a tonne of money. If you feel like you’re being overcharged, start looking elsewhere for a new supplier. At the very least this will force the guy you’re currently working with to think about offering you a better deal.
Move Out of Town
One of the biggest expenditures for any business is rent costs. You need to make sure you’re not spending more than you need to on your premises, whether you buy it or rent it. A business located in the wrong place is like letting money slip through your fingers.
The beauty of owning a garage is that the location isn’t too important. You don’t need to be located in the middle of a city centre. Find a location that’s easy to get to, visible from the road and in a relatively cheap area. The money you’ll save will be quite substantial.
Use Word of Mouth
If you treat your customer well and offer them a good service, they will be likely to spread the word about your business. This is the first step to developing a word of mouth marketing technique. If you don’t offer a great service, then this tip is impossible to follow.
If you do, however, you could bring in a lot of new customers. The great thing about it is that it’s totally free. You could even prompt customers to spread the word and tell their friends about your company if they have a positive experience with you.
Save on Your Insurance
If you run a call out operation, you’ll most likely have a fleet of vans. This is a great idea because it provides an extra string to the bow of your business. It does present a problem too, however. Because all those vehicles will need to be insured, which is pretty costly.
This can be helped by getting a combined car insurance from a company that offers policies for garages and car showrooms. This can be a great relief when you consider how much it can cost to pay for individual insurance policies.
Buy Unwanted Cars
This one is less a way of saving money, than a way to make a bit of extra cash on top of your usual income streams. Think about this is you’re looking to expand your business.
When a customer comes to you with a problem with their car, sometimes they won’t be willing to pay for the repair. If this happens, consider offering to buy their car from them. This will allow you to get the car cheaply and from there you’ll be able to fix the car and sell it on at a profit. Everyone’s a winner!
Go as Green as Possible
Becoming a bit greener and more energy efficient can be a great way to save money. A lot of people still think that going green is expensive. But that’s not necessarily the case. Usually, you can save a few quid, in the long run.
You could do small things like switching your equipment and appliances off when they’re not in use. Alternatively you can go for something a bit bigger such installing solar panels or a wind turbine to cover your energy needs. This will save money on your utilities and make your business more environmentally friendly.