21 Jun 2024
The voice of the independent garage sector

Have a break: New video series aimed at garage owners launched

Tea Break Talk, A brand-new series of 10 minute videos released fortnightly and aimed at independent garage owners looking to maximise workshop efficiency and profitability has launched.

The Garage Inspector Andy Savva and Sean Satchwell from the Tool Connection are among the guests appearing in the first series, which has just finished filming.

Episode One, which is available now, sees Andy talking about how garage owners may see a busy workshop, and make the mistake of incorrectly assuming that this means they are making money, which only happens when the hourly rate is correctly calculated.

He said: “In the UK, 99% of independent garages do not make a profit on their labour. They’re busier than ever, more stressed than ever and still not making the returns they deserve. A garage’s main income must come from its labour, not the mark-up on parts. If we put 40 percent on a part, why not on the labour rate? A lot of garages’ hourly rates don’t even cover their overheads – they’re effectively losing money with every hour they charge out.It’s a myth that customers won’t come if the labour rate is increased. The key is working smarter, not harder. Garages must be able to say ‘no’ to non-profitable jobs.”

Jim Lang from Garage Services Online concurred: “Garages need to promote themselves for the jobs that make the most money. The best way to find that work is via their website. It’s the most cost-efficient way to bring the most profitable jobs through the door.”

In future episodes, Jim and Andy are joined by Sean Satchwell from The Tool Connection, with Block Exemption; investment, staff shortages, the ageing car parc and the rise of EVs all being discussed.

To access, visit Garage Services Online’s YouTube channel: www.youtube.com/watch?v=OHqYAW0uCX8