In the Auto Body industry there is an abundance of companies competing for car owner’s attention. This means that choosing the right type of work for your auto body shop is your key to success. Some bodyshops tend to focus on high volume smart repairs & small spray painting jobs that can be turned around quickly, while others work on complex structural repairs that take more time but are generally more profitable.
As with all types of competitive industries, auto body shops must be able to complete jobs quickly and efficiently in order to maximise profit margins. This means they will often usually need to be able to complete painting operations in the shortest amount of time possible. For small to medium size body shops providing a high quality finish and quick turnaround on their spray painting jobs is a daily challenge and rising fuel and electricity costs mean using a paint oven for small repairs is an expensive option.
At Albatross Spray Booths we are here to help with this issue. This articles outlines the main differences between small and big spray jobs and the advantages for both – take a look.
Combining Smart & Structural Repairs
Many companies focus on smart repairs and there has been a substantial increase in demand for auto body shops who specialise in same or next day turnaround. This business model is high volume but generally lower margin so efficiency is key.
Auto Body Repairs in Ennis, Co Clare, Ireland have been using the Albatross Mobile Spray Booth for over two years now and the results have been outstanding; they have increased turnaround times for their customers by putting smaller spray paint jobs through the Albatross Mobile Spray Booth instead of their main paint oven without any difference in the quality of the finish. Being able to take on more work they have increased their turnover while simultaneously reducing their energy costs for smart repairs by a massive 94%. Take a look at the full case study here.
Big Spray Painting Jobs
Many other companies focus mainly on structural repairs which are more time consuming but can give a higher margin as long as labour and material costs are managed correctly.
Brian Martin owns two auto body repairs shops in America, Lexus of Pembroke Pins and Lexus of North Miami. He services approx. 500 vehicles per month mainly giving estimates to insurance companies for larger scale repair jobs
The success of Brian’s operation hinges on giving accurate estimates to his customers and working to ensure each job is completed within the estimated time frame. It is also essential that he can accurately estimate painting costs. At a time when power costs seem to be increasing rapidly it is essential that the increased cost of running his paint oven is factored into his estimate as is the cost of purchasing and mixing the paint.
Running an efficient shop management system which tracks each jobs hours and material usage, Mark can also review profit margins for each job and adjust future estimates if necessary.
Overall both shops are consistently attaining gross profits of between 55% – 65% and Martin has outlined his four main rules to controlling costs
- Understand exactly what is required to bring the car back to company standard.
- Ensure accuracy of each and every estimate.
- Work to reduce material and power costs where possible
- Review jobs monthly to ensure they conform to estimates.
Conclusion
Within the auto body industry there are views that there is no one size fits all and body shop managers should decide to either target their efforts on high volume smart repairs or lower volume structural repairs. The experiences of crash repair companies that have used the Albatross Spray Booth has shown that you don’t have to choose between smart and structural repairs and that it makes sense to run both types of repairs in tandem to maximise profitability. We understand that besides two of the biggest costs for any body shop are people and power and that anything which can help reduce these costs is vitally important in maximising profit margins.
Here at Albatross Spray Booths we are always available to discuss the benefits our spray booth can bring to your operation.
Call us today on +353 61 369169 or email us at info@albatrosspraybooth.com