A few simple rules are there in order to run a successful automotive repair business; according to Kurt Krans, the first one is to keep it simple. Although he is aware of the fact that an average day of repair shop is not simple, but a lot chaotic.

So, he gives other rules of keeping things, processes and systems in place.

There are numbers to back him up. He has a team of five people, pushing out 175 jobs a month of about $800-per-ticket clip, with margin to high-end vehicles (50-55%) and that to loaded labor (75%). The profit margin is a marvelous 37%.

 1. Financial Responsibility

Practice Patience

Krans’ business has 33 continuous profit years since its opening and it has always relied 100% on self-financing.

While making any business purchase, he researches it thoroughly, starts saving money, does revaluation of initial research and then hits it. In 1982, when initiating his business, he wanted a larger facility, but was actually able to buy it after 16 years.

2. Specialized Service

Create a Secure Position

You can’t be everything to everyone. So, Krans focuses on specializing your shop, so that you would be an expert in your focus.

Earlier, Krans was a BIMRS member, which is an international BMW repairing network. His shop prioritizes to repair any vehicle issue entering their shop.

3. Client Relationships

Create Indestructible Ties

Another core philosophy of Krans is to take business and customer as family. He says that customer want the shop’s staff to understand their concerns and do their work as their own.

That is why, Krans loves to deal with the customers ans writes all his shop’s services. Doing this for 33 years, he has a well-established relationship with customers. According to him, this rule gets you customers-for-life. That is why, Krans’ shop has retention rate over 90% with zero marketing.

4. Staff Supervision

Build a Capable Team

Krans passionately worked at Tulsa Technology Center and also served at Oklahoma State University Institute of Technology’ steering committee. At OSU, he volunteered to train students for real-world experience and later used that knowledge in the shops full-time. He currently has three full-time technicians, all retrieved from these training programs.

It may seem expensive, but according to Krans, a qualified technician is worth it as it costs less than the cost you pay for hiring an unqualified technician.

5. Management of Workflow

Put Productiveness First

Three factors contribute to technician efficiency in shop: well-trained and well-equipped technicians, nicely scheduled work-mix and conducive work environment.

According to Krans, there is nothing to worry if staff is properly equipped and have the required training; they can take care of the business.

Krans’ company, European Autospecialist works as on appointments only. So, Krans has a true hold of work; he often orders parts in-advance. Every day, at the end, he holds full production meetings and plans for the coming day to ensure business efficiency.

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