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Case Study – Automotive Repair Facility

Automotive Repair Case StudyChallenge:

While revenue at this 4-bay facility was growing steady at 5%, net profit was down over the past three years. Profit margins were declining and well below industry average.

Our Goal:

To continue to grow sales while improving profit margins and net profit

Actions Taken:

  • Developed a unique selling proposition and guarantee based on company’s strengths and modified our advertising to reflect the change.
  • Increased prices of certain services based on value and competition.
  • Documented service delivery process and integrated checklists to ensure a consistent buying experience for all customers. We also provided a 30 point checklist to the customer when they picked up their cars.
  • Added special touches like Hershey Kisses to WOW customers and add value.
  • Modified and consistently used a reminder system to reinforce our full range of services and generate more repeat business.

Our Results:

Within 5 months, average customer transactions grew from $274 to $328, a 16% improvement. At the same time, gross profit margins increased from 21% to 37% and net profit increased 14%.

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