Automotive: How GPS Can Help
As the owner of an auto collision or mechanical shop, you need to assure your business’ future through management tools that work. GPS can help you fix your company by implementing or enhancing the following: cash management, advertising techniques, cost control, organization and communication, financial planning and performance standards.
GPS can assist you in controlling operating expenses and reducing costs thereby yielding profits—if you take the time revise your operations, you can make it happen. GPS puts systems in place to assure profits. Let GPS help you implement the following tools:
Cash Management
- Cash flow forecasting
- Management of cash flow
- Spreading out payables and managing receivables
- Predicting cash flow problems with computer software programs
Advertising Techniques
- Critiquing of advertising design to capture the customer’s attention
- Evaluating your return on advertising costs
- Selection procedures and prioritizing of advertising media
Cost Control
- Calculation of overhead costs for better repair estimates
- Controlling the variance between the repair estimate and the actual cost
- Improving productivity in the shop and lowering costs
Organization/Communication
- Authority and responsibility of key people clearly defined
- Management information systems to measure and control operations
- Using organizational charts to minimize headcount
- Targeting budgeted cost areas to achieve cost reduction objectives
Financial Planning
- Development of flexible budgets and control of overhead costs
- Determining breakeven levels and how to reduce them
- Evaluating the true profitability of various types of repair jobs
Performance Standards
- Motivation of operational personnel through performance standards
- Using “The Share Plan” to give personnel a piece of the action
- Measuring the productivity of body and paint technicians
