If you’re spending too much time trying to figure out auto repair estimates by hand, you’re not alone!
We understand how tricky and time-consuming it can be. Therefore, there’s an easier way to get things done. Using auto repair estimate software can help save you time and energy, so you can focus on what matters.
It helps you get quick, accurate auto repair estimates that make a big difference in your work. When estimates are accurate, it’s not just about fixing cars right? It also means you’re making more money and running a more efficient business.
So, for a closer look, check out our guide on “What is Auto Repair Estimating Software.”
The Real Cost of Inaccurate Estimates
Inaccurate auto repair estimates cost shops a lot more than they realize.
Let’s break it down with examples and numbers to show why getting estimates right is so important.
How Underestimating Jobs Affects Shop Profitability
Inaccurate auto repair estimates cost shops a lot more than they realize.
Let’s break it down with numbers to show why getting estimates right is so important.
First, underestimating jobs hurt a shop’s profitability.
A shop quotes $500 for a brake repair but later realizes the job requires more parts and labor, costing $700. The shop now loses $200 on that job. If this happens just 10 times a month, that’s $2,000 lost!
Click here to make your auto repair estimates Quick and Accurate.
Overestimating Jobs Impacts on Customer Trust and Retention
Your reputation is crucial as the owner of an auto repair shop. Trust is one of the most important factors in keeping satisfied customers.
However, overestimating repair work in terms of cost or time can quickly break that trust, resulting in unhappy clients and eventually a decline in revenue.
For instance, if you give a customer a three-day estimate for a brake repair but it only takes one day, they will question why you provided them such a lengthy estimate.
Likewise, a customer will take aback or irate if you tell them that an oil change will cost $100 but that the bill ends up being $150 due to additional repairs.
To prevent this, make sure to keep them informed so they are aware of any consequences if things end earlier than anticipated.
How Accurate Auto Repair Estimates Improve Revenue & Profits
By providing precise estimates, you make sure your business earns enough to cover all costs and make a profit. Here’s how accurate estimates help increase your shop’s revenue and profits.
Offer Precise Pricing (labor/parts)
A mechanic tells a customer that changing an oil filter will cost $200, but the actual cost of parts and labor is $250. If the shop only charges $200, they lose $50. This happens when the shop underestimates the cost of the job, whether it’s for parts or the time it takes to complete the work.
Therefore, using auto repair estimate software prevents you from this loss. Because this is integrated with Epicor and part suppliers (Nexpart and PartsTech). Epicor gives you accurate labor time guides and updated parts prices.
By using this tool you can provide precise auto repair estimates from the start. For example, if you know an oil filter job costs $250, you should quote that price to the customer. This ensures that you cover the cost of parts, labor, and overhead, and still make a profit.
By getting your prices right, your shop stays financially healthy and avoids losing money on repairs.
Building Customer Trust
Accurate pricing generates client trust. Customers want to know the precise cost and estimated time of service when they come in for a tire replacement or oil change. They will trust that you are being truthful with them if your estimations closely match the actual amount.
Your customers will value your honesty if you tell them their automobile will be ready in an hour and it will be finished in that same hour. But they will become irate and lose faith in your auto repair shop, though, if they are told it would take an hour but it takes three. Because of this, they decided to choose a different shop the next time their automobile required service.
For instance, you can see Midas, a chain of auto repair shops, provides transparent, up-front pricing for all services. They have established a good reputation. Customers’ trust is increased by this transparency, which also guarantees quick job approval.
Reducing Invoice Disputes and Increasing Job Approval Rates
The possibility of disagreements over the final billing is decreased when estimations are precise. Customers can get irate and dispute the cost if they receive a quotation of $100 for a repair and are then unexpectedly charged $150.
Your business loses revenue because of job delays and negative reviews. You don’t want that! Therefore, consumers are less likely to contest the final price, though, if you provide an accurate estimate and go over any modifications with them beforehand.
For example, Firestone Complete Auto Care, which provides detailed estimates for every job. If mechanics find additional issues during a repair, they contact the customer for approval before proceeding. This practice has helped Firestone maintain customer satisfaction and trust.
Tips for Ensuring Estimating Accuracy
Use Digital Estimating Software
As we know, things are changing quickly in the automotive industry. If you want your auto repair shop to succeed, it’s important to keep up with these changes.
One excellent way to do this is by using auto repair shop management software. This software can save you a lot of time because it does the math for you, and there’s no chance of making mistakes when giving customers an estimate.
With the right software, you can manage your money better and keep track of costs. It helps make your customers happy because they’ll get quick and accurate auto repair estimates.
Leverage Auto Repair Labor Time Guides
The automotive labor time guide is a helpful tool that shows you how long different car repairs should take. It’s made to fit each car’s make and model. With just a few clicks, you can find out how much time a repair job will need. This way, you can be sure you’re planning the job right and can do it with confidence.
Click here to learn more about “Why Do You Need Automotive Labor Time Guides?”
Train Your Mechanics
To make good estimates, you need to make sure your workers are trained the right way. It’s important to teach them about new technology and trends in the car repair world.
Everyone fixing cars in your shop should understand how the system works. This helps them make more accurate estimates.
It’s also a good idea to have one person who focuses only on making estimates. This person should be trained well and know a lot about how repairs are done. If they don’t, they might not be able to write a complete estimate.
Wrapping Up!
Accurate auto repair estimates can save you money by helping you avoid mistakes and make sure repairs are done right the first time. When your team knows exactly how long a job will take, you can work more efficiently and keep customers happy. This leads to better profits and a smoother-running business.If you want to see how this works, try Torque360 software! Request a Demo today and see how it can help your business grow.
