Free book for workshop owners  ·  Second edition

How To Get Profitable Fast

The 13 biggest leaks holding your workshop back from growth and profit, and how to fix each one.

By James Mitchell, CEO of Workshop Software
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Most workshops aren’t short of work. They’re leaking profit. This book shows you where, with real workshop stories, and what to do about each one tomorrow.

Each chapter ends with a health check question. Answer them as you read, and you’ll get your workshop’s score at the end, with the three leaks to fix first.

Contents

  1. Chapter 1Get found before your competitor doesNew
  2. Chapter 2Let customers book themselves
  3. Chapter 3Do you have my vehicle information?
  4. Chapter 4Stop hunting for technical dataNew
  5. Chapter 5Talk with me, not at me
  6. Chapter 6Is your technician's billable time accurate?
  7. Chapter 7Know where every job is up to
  8. Chapter 8Invoices customers understand
  9. Chapter 9What is the right price?
  10. Chapter 10Get paid on the day
  11. Chapter 11Stop the tax-time scramble
  12. Chapter 12Know your numbersNew
  13. Chapter 13Find and keep good techniciansNew
  14. ClosingClosing the leaks
Names and some details in these stories have been changed.

Chapter 1  ·  Getting found

Get found before your competitor does

New customers search before they ring. Here's how to be the workshop they find, and the one they trust.

3 minute readBy James Mitchell

Think about the last time a new customer walked in. Before they rang you, they almost certainly searched. They typed "mechanic near me" or "brake repairs" into their phone, looked at the first few workshops that came up, read some reviews and picked one.

If your workshop wasn't in that short list, you never knew that customer existed. You didn't lose them on price or on service. You lost them before they knew your name.

When I wrote the first edition, word of mouth and the local paper did most of this work. Word of mouth still matters, but now it happens online, in your reviews, where every new customer can read it.

What a new customer checks before they ring

  1. Are you close and open?Your address, hours and phone number, correct and easy to find.
  2. Do other people trust you?How many reviews you have, how recent they are, and how you answer the bad ones.
  3. Do you do what I need?The services you list and the vehicles you work on.
  4. Can I book without ringing?Many people search after hours, when your phone isn't answered.

Most workshops are good at the work and invisible online. The workshops that get found aren't always the best ones. They're the ones that make these four answers easy.

Reviews are the new word of mouth

Picture two workshops on the same street. One has 14 reviews, the newest from last year. The other has 160, with a few new ones every week, and the owner has replied to each of the bad ones calmly and fairly. A stranger reading those two listings will pick the second one almost every time, even if the first one does better work.

The second workshop isn't lucky. It asks. Every happy customer gets a simple, friendly request for a review, sent while the good experience is still fresh. Most people are happy to help when they're asked, and very few think to do it on their own.

And when a bad review comes in, answer it. Don't argue. Thank them, explain what happened in a sentence, and offer to fix it. The next customer reads your reply more carefully than the complaint.

Your website is your shopfront after hours

Your website doesn't need to be fancy. It needs to answer the four questions above on a phone screen in a few seconds. A phone number they can tap. Your hours. The services you offer. And a way to ask for a booking at 10 o'clock at night, when they finally have time to sort out the car.

A website that hasn't been touched in five years tells the customer something about how you run your workshop, whether that's fair or not.

Where the money leaks

  • Invisible on search. Customers who would have loved your work book with someone they could find.
  • Old or wrong details. Wrong hours or an old phone number send customers somewhere else.
  • Too few reviews. A good workshop with 14 reviews loses to an average one with 160.
  • Unanswered bad reviews. Silence reads as "they don't care".
  • No after-hours option. The customer who searches at night books with whoever lets them.

Try this tomorrow

Search for your own workshop on your phone, the way a stranger would. Check your hours, your phone number and your newest review. Then ask your next five happy customers for a review before they leave.

Health check  ·  question 1 of 13

If a stranger searched for a workshop near you tonight, would they find you, and would they trust what they read?

Answer as you read. Your score is waiting at the end of the book.

How Workshop Software does it
  • Workshop websites. WorkshopWeb gives your workshop a website from Workshop Software. Online booking is fully integrated and set up for you automatically.
  • Your customer list, ready to ask. Every customer and their contact details are already in Workshop Software, so you can send a review request yourself after the job.
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Chapter 2  ·  Bookings

Let customers book themselves

Under-booked days cost you wages. Over-booked days cost you customers. Here's how to fill the diary with what you can really do.

3 minute readBy James Mitchell

Every day your workshop is under-booked, you're paying technicians to wait for work. Every day it's over-booked, you're about to let a customer down. Both cost you money. One costs it today, the other costs it in a customer you never see again.

It's like a bucket with a hole in it. You can keep pouring work in the top, but if the bookings are wrong, the profit drains out the bottom.

Goneone customer, across the road for good

Todd's double-booked Monday

Before Todd sorted out his bookings, Monday mornings were chaos. Bookings were taken by whoever answered the phone, written in a diary, on a notepad or remembered. Nobody saw a cancellation until the bay sat empty. Nobody adjusted the bookings when a technician called in sick.

One Monday a customer arrived for a booking Todd didn't know existed. There was no bay and no technician free. Todd apologised and offered her another day. She said she understood, walked across the road to his competitor and never came back.

Todd didn't lose her because his work was bad. He lost her because nobody could see the diary.

Book to what you can actually do

A good booking diary isn't a list of names. It's a plan for the day that matches the hours you really have.

  1. Know your real capacityCount technician hours available, not bays. If someone is on leave, the day gets smaller.
  2. Leave room for the unexpectedBreakdowns, comebacks and the customer who "just needs a quick look" will always turn up. Keep some time free for them.
  3. One diary, everyone sees itFront desk, technicians and the owner should all be looking at the same bookings, on the counter and on the floor.
  4. Remind them the day beforeA text the day before cuts no-shows and gives you time to fill the gap if someone cancels.

The customer wants to book at 10pm

Your customers work during the day too. Plenty of them only get around to the car at night, on the couch, with their phone. If the only way to book is to ring during business hours, some of them never do.

Letting customers request a booking online means the diary keeps filling while you're closed. You still stay in control. You check each request, confirm it or offer another time, and nothing lands in the diary that you can't handle.

Where the money leaks

  • Empty hours. A technician paid for eight hours with five hours of work.
  • Over-booking. Customers turned away or kept waiting, and some never come back.
  • No-shows. A booked bay that sits empty because nobody reminded the customer.
  • Missed after-hours customers. People who would have booked, if they could have done it without ringing.
  • Diary nobody can see. Cancellations and sick days that don't make it into the plan.

Try this tomorrow

At the end of each day this week, write down two numbers: technician hours available and hours actually booked. The gap between them is the money your bookings are leaving on the table.

Health check  ·  question 2 of 13

Does your diary match the technician hours you really have each day, and can customers ask for a booking when you're closed?

Answer as you read. Your score is waiting at the end of the book.

How Workshop Software does it
  • Booking Diary. All bookings live in the Booking Diary, so the whole team sees the same day.
  • Online booking requests. Customers can book through an online booking request link or from your workshop's website. Workshop Software notifies you of the new booking and you approve it. The mobile app gets a notification too.
  • Your website, or ours. WorkshopWeb comes with online bookings fully integrated. If you already have a website, a plugin and an API let you add online bookings to it.
  • Booking reminders. Customers get a reminder before their booking.
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Chapter 3  ·  Vehicle history

Do you have my vehicle information?

Customers judge you on how well you know their car. Here's how to see its whole history in seconds.

3 minute readBy James Mitchell

A customer rings and asks, "When did you last do my brakes?" How long does it take your front desk to answer? If the answer is "let me find that and call you back", that customer has just learned something about your workshop.

Customers judge you on how well you know their car. When you can see its whole history in seconds, you look organised, you quote faster and you spot the work that's due. When you can't, your staff waste time hunting, and the customer starts to wonder who else could look after them.

Storyand why nobody at his old workshop ever found out

Kyle stopped coming back

Kyle had taken his car to the same workshop for years. He liked the people and the work was fine. But every visit started the same way. Nobody could tell him what had been done last time, so he had to remember it himself.

Then he tried a workshop closer to his new job. They pulled up his car's history straight away, told him the coolant was due, and sent him a reminder when his next service came around. Kyle never went back to his old workshop. Nobody there ever found out why.

What you should be able to see in seconds

  1. The vehicle itselfMake, model, engine, VIN and registration, without the customer reading them out.
  2. Everything you've done to itEvery job, every part, every note, in order.
  3. What's coming upThe next service, and anything you recommended last time that the customer didn't go ahead with.
  4. Who owns it nowThe right name, phone number and email, so reminders reach the right person.

The work you already found

The most valuable line in a vehicle's history is often the one the customer said no to. "Rear pads at 30%, recommend replacing next service." If that note is buried in a filing cabinet or a technician's memory, it's gone. If it comes up the next time the car is booked in, it's a job you've already sold once.

Where the money leaks

  • Time spent hunting. Every lookup in a drawer or an old system is front desk time you're paying for.
  • Slow quotes. The customer waits while you work out what was done last time.
  • Forgotten recommendations. Work the customer was told about, then never reminded of.
  • Missed services. Without the history, nobody knows when the car is due, so nobody reminds them.
  • Customers who drift. People like Kyle, who leave quietly for a workshop that knows them better.

Try this tomorrow

Pick three cars that came in last month. Time how long it takes to answer three questions about each: last service, last brake job, and what you recommended that they didn't do. If it's more than a minute each, that's your leak.

Health check  ·  question 3 of 13

Can anyone at your front desk see a car's full history, and what's due next, in under a minute?

Answer as you read. Your score is waiting at the end of the book.

How Workshop Software does it
  • Vehicle history. Every job, part and note is saved against the vehicle, ready the next time it comes in.
  • Vehicle lookups. Look up the vehicle's details instead of typing them in by hand.
  • Service reminders. Sent automatically by SMS and email when the car is due for its next service.
  • On the floor too. The native mobile app puts the vehicle's details in the technician's hand.
  • Follow-ups. Use follow-ups in Workshop Software to keep track of recommended work the customer didn't go ahead with.
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Chapter 4  ·  Technical data

Stop hunting for technical data

Modern cars need exact data. Here's what slow lookups and guesswork really cost, and what good looks like.

3 minute readBy James Mitchell

Cars have changed a lot in the last ten years. More electronics, more variants of the same model, more procedures that have to be done exactly to the manufacturer's spec. No technician can carry all of that in their head, and no good technician guesses.

So they look it up. The question is how long that takes, and who is paying for it.

Where the time goes

Picture a technician on a service. They need the oil capacity and grade, the torque settings for the wheels, and the service interval for this exact variant. On a modern car they might also need a reset procedure or a wiring diagram.

In a lot of workshops, that means walking to a shared computer, logging into a separate website, finding the car again, and scrolling. Or ringing a mate. Or asking the parts supplier. Each lookup might only take five or ten minutes, but it happens on nearly every job.

Do the sums for your own workshop. If each technician loses 15 minutes a job looking things up, and does 6 jobs a day, that's an hour and a half a day each that nobody can charge for. Across a team of four, it's most of a technician's day, every day.

Guessing costs more than looking

The only thing worse than slow technical data is no technical data. The wrong oil, the wrong torque or a skipped step in a procedure turns into a comeback. A comeback is a job you do twice and get paid for once, plus a customer who now wonders whether you know what you're doing.

Accurate data from the manufacturer protects the customer's car, your warranty work and your reputation.

What good looks like

  1. Inside the job, not on another screenThe data for this exact vehicle, where the technician is already working.
  2. The right variantNot "close enough" data for a similar model.
  3. Manufacturer-verifiedData you can stand behind if something is ever questioned.
  4. Feeds the quoteThe information that tells you how long a job should take also helps you price it properly.

Where the money leaks

  • Unbilled lookup time. Minutes on every job that nobody pays for.
  • Comebacks. Work done twice because a spec was guessed.
  • Turned-away work. Jobs you say no to because you don't have the information to do them.
  • Under-quoting. Jobs priced from memory instead of from real data.
  • Technicians stuck at the computer. Instead of on the car.

Try this tomorrow

Ask each technician to tally every time they leave the car to look something up, for one day. Multiply the total by your labour rate. That's what slow technical data cost you that day.

Health check  ·  question 4 of 13

Can your technicians get manufacturer data for the exact vehicle in front of them without leaving the job?

Answer as you read. Your score is waiting at the end of the book.

How Workshop Software does it
  • WorkshopData. Manufacturer-verified technical data from HaynesPro, inside Workshop Software.
  • Always one click away. WorkshopData can be opened from the header on any page.
  • The right vehicle. Select the exact vehicle variant before you look anything up.
  • What's covered. Labour times, service schedules and wiring diagrams.
  • Electronics and diagnostics. An Electronics category and diagnostic tools.
  • Service notes from WorkshopData. Pull a service in from WorkshopData and the job comments are created automatically, with exactly what was done on that service.
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Chapter 5  ·  Customer contact

Talk with me, not at me

Customers who are kept in the loop say yes to more work, pick up on time and come back. Here's how to keep them there.

4 minute readBy James Mitchell

Your customers have their phone in their hand all day. They text their mates, their kids and their boss. Then they drop their car at your workshop and hear nothing until 4 o'clock.

That silence costs you. Customers who are kept in the loop say yes to more work, pick up their car on time and come back for the next service. Customers who are left wondering ring the front desk, question the bill and quietly try someone else next time.

When I wrote the first edition of this book, a reminder card in the post and an email blast were good communication. Today the customer expects a conversation. Not a newsletter. A text from their workshop, about their car, that they can reply to.

What your customer wants to hear, and when

Most of the phone calls into a workshop are customers asking a question you could have answered before they asked it. Four messages take care of most of them:

  1. When the work starts"Hi Sarah, your Corolla is in the bay now. We'll be in touch if we find anything."
  2. Before any extra workWhat you found, what it costs, and a photo so they can see it for themselves.
  3. When it's readyThe total, the pick-up time, and a link so they can pay.
  4. When it's due againA reminder before the next service, sent at the right time for that vehicle.
Sarah  ·  Tuesday

Hi Sarah, your Corolla is in the bay now. We’ll be in touch if we find anything.

The front CV boot is split. Replacing it is $185 and adds about an hour.

Yes, go ahead

All done. Ready from 3:30. Total and a link to pay are below.

Example conversation. Illustration only, not a product screen.

None of these take long to send. Every one of them saves a phone call, and the second one makes you money.

Show them, don't just tell them

Picture this. A technician finds a worn CV boot on a routine service. In the old days, the service adviser rings the customer at work. The customer can't picture a CV boot, doesn't want to be upsold, and says "just do the service, I'll think about it."

Now picture the same job with a photo. The technician takes a picture of the split boot during the inspection. The customer gets a text with the photo, a short note and the price. They can see the problem with their own eyes, on their own car. They reply "yes, go ahead" from their desk, and the job keeps moving.

The work was always needed. The photo is what got it approved. Customers don't trust what they can't see, and they shouldn't have to.

$0what it cost Tim to win Danni back

Danni's overdue service

Tim runs a busy workshop. His system flagged that one of his regular customers, Danni, was well overdue for a service. Instead of sending the usual reminder, Tim offered to split the cost of the service into two payments.

Danni booked straight away. It hadn't been the reminder she needed. It had been a reason to say yes. It cost Tim nothing, and he got back a customer he was about to lose without ever knowing it.

The lesson isn't the payment plan. It's that Tim knew who was overdue, and he had a simple way to reach her with something that mattered to her.

Fulla week that normally ran at half capacity

Todd's empty Christmas week

The week between Christmas and New Year was always quiet at Todd's workshop. One year his oil supplier offered a bulk discount. Todd passed the saving on with a Christmas oil change special and sent it to his customer list.

It took him a few minutes. The bookings came in, and a week that normally ran at half capacity was full. No advertising spend, no flyers, no radio. Just the right message to the people who already trust him.

Every workshop has quiet weeks. The ones that fill them are the ones that can reach their own customers quickly.

Where the money leaks

  • No-shows. A booking that doesn't turn up is a bay and a technician paid to stand still. A reminder the day before cuts them right down.
  • Unapproved work. Jobs sit waiting while the front desk plays phone tag with the customer.
  • Cars left on the lot. The job is done, but the customer doesn't know, and you can't book the next car into that space.
  • Lost customers. Nobody reminded them, so they went to whoever reminded them first.
  • Front desk time. Every "is my car ready?" call is time your service adviser isn't spending on the next customer.

Try this tomorrow

Pick the four messages above and write them down as your standard. Then count how many "is my car ready?" calls you get in one day. That number is the time you get back.

Health check  ·  question 5 of 13

Does every customer hear from you before they have to ring and ask?

Answer as you read. Your score is waiting at the end of the book.

How Workshop Software does it
  • Two-Way SMS. Text conversations with customers, in a chat-style screen inside Workshop Software. Replies come back to the same conversation, so the whole team can see them.
  • On the phone in your pocket. Two-Way SMS is also in the Workshop Software mobile app, with push notifications when a customer replies.
  • Inspections. Attach a photo to the inspection and send it to the customer, so they can see what you found before they approve the work.
  • Reminders. Service reminders go out automatically by SMS and email when a car is due for service.
  • Proven at scale. Workshops send over 100,000 SMS a month through Workshop Software.
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Chapter 6  ·  Labour

Is your technician's billable time accurate?

Labour is what you sell. Here's how to find the gap between the hours you work and the hours you charge.

3 minute readBy James Mitchell

Labour is what you sell. Every hour a technician works and you don't charge for is profit you've given away. Every hour you charge for that wasn't really worked is a customer you'll lose when they work it out.

Most workshops don't know which one is happening. They know what they charged. They don't know what the job really took.

$15,000a year lost on one service, from a price that never moved

Joe's $15,000 logbook service

Joe had run his workshop for ten years. For most of that time he charged $200 for a logbook service, and it took about an hour.

But cars changed. More checks, more electronics, more steps in the manufacturer's schedule. Slowly, without anyone noticing, the same service started taking two hours. Joe's price never moved.

He was doing about three of those services a week. At roughly $100 under-charged each time, that one job was costing him about $15,000 a year. Nobody was lazy and nobody was cheating. Joe just didn't have the numbers to see it.

Hours worked versus hours charged

The gap between the time a job takes and the time you charge is where labour profit leaks. To close it, you need two numbers for every job:

  1. Hours workedThe real time the technician spent on the job, recorded as it happens, not guessed at the end of the day.
  2. Hours chargedWhat the customer paid for.

Put those side by side, job by job and technician by technician, and the problems show themselves. A job type that always runs over. A price that hasn't moved in years. A technician who needs help, or one who deserves a pat on the back.

Check your prices against the book

It's easy to quote a job from memory. It's also how a price gets stuck indefinitely. Manufacturer labour times give you a fair, standard number for how long a job should take on that exact vehicle. Use them as a check on your own prices. If your price is well under the book time, ask yourself why.

Where the money leaks

  • Stale prices. Fixed prices that haven't kept up with how long the job takes now.
  • Time nobody records. Extra work found on the job and never added to the invoice.
  • Guessed timesheets. Hours filled in at the end of the day from memory.
  • No comparison. Without worked versus charged, nobody sees the gap.
  • Quoting from memory. Instead of from real labour times.

Try this tomorrow

Pick your three most common fixed-price jobs. For the next week, record how long each one really takes. Compare that with the price you charge and the time it's meant to take.

Health check  ·  question 6 of 13

Do you know, job by job, the difference between the hours your technicians worked and the hours you charged?

Answer as you read. Your score is waiting at the end of the book.

How Workshop Software does it
  • Labour times. WorkshopData includes labour times, so you can check your prices against a standard number for the exact vehicle.
  • Clocking on and off jobs. Technicians clock on and off each job from the mobile app, the desktop application or the web application.
  • Mechanic Performance report. Compare hours worked with hours charged. It's one of a number of mechanic reports in Workshop Software.
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Chapter 7  ·  Job flow

Know where every job is up to

If you have to walk out and ask, you're paying for it. Here's how everyone can see every job without leaving their seat.

3 minute readBy James Mitchell

"Where's that Hilux up to?" If the only way to answer that is to walk out to the floor and ask, you're paying for it. Not once, but dozens of times a day.

If you don't know where your jobs are up to, you don't really know where your money is either. Work in progress is cash you haven't collected yet.

5 hrsof labour lost every day to walking and asking

Billy's five hours a day

Billy bought a workshop that had no real system. Everything lived in people's heads. So Billy and his service manager did what everyone does: they walked out and asked.

They each did it about six times a day, and every interruption cost around ten minutes by the time the technician stopped, explained and got going again. With five technicians, that added up to about five hours of lost labour every day. More than 30 hours a week, paid for and never charged.

Then it got worse. Billy found parts sitting on the shelf for jobs marked "waiting on parts". The parts had arrived. Nobody had told the technicians. Cars sat in bays for days for no reason at all.

The four questions every job should answer

Anyone in the workshop should be able to answer these without leaving their seat:

  1. Who's on it?Has a technician been given the job?
  2. What stage is it at?Waiting, in progress, waiting on parts, waiting on approval, or done.
  3. Is anything holding it up?Parts, approval, a question for the customer.
  4. Will it be ready on time?And if not, has the customer been told?

When those answers are in one place that everyone can see, on the counter and on the floor, the walking and asking stops.

Put it in the technician's hand

Technicians don't want to walk to a computer every time something changes. If they can see their jobs and update them from a phone, at the car, the information stays current. And when a part arrives or a customer approves extra work, the right person finds out straight away instead of at smoko.

Where the money leaks

  • Interruptions. Every "how's it going?" costs technician time.
  • Parts on the shelf. Jobs stalled for parts that have already arrived.
  • Approvals waiting. Extra work found, but nobody chased the customer.
  • Cars ready but not collected. Because nobody told the customer it was done.
  • No view of work in progress. So you don't know what's coming in the till this week.

Try this tomorrow

For one day, keep a tally every time someone asks a technician where a job is up to. Multiply by ten minutes. That's what not knowing costs you.

Health check  ·  question 7 of 13

Could you tell me where every job in the workshop is up to right now, without walking onto the floor?

Answer as you read. Your score is waiting at the end of the book.

How Workshop Software does it
  • The native mobile app. Technicians and owners can see the work from their phone, wherever they are.
  • Team notifications. Real-time push notifications to the team in the mobile app, so the right person knows when something changes.
  • Bookings on your phone. The mobile app also notifies you when a new booking comes in.
  • Transaction Centre. The heart of Workshop Software, showing exactly where every job is up to.
  • Parts reporting. Run a report to see which parts ordered for a job have arrived.
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Chapter 8  ·  Invoicing

Invoices customers understand

The invoice is the last thing a customer sees before they pay. Here's how to make it clear, quick and easy to trust.

3 minute readBy James Mitchell

The invoice is the last thing a customer sees before they pay, and the thing they keep. If it's clear, they pay and leave happy. If it's confusing, they question it, your front desk spends ten minutes explaining it, and the customer drives away a little less sure about you.

When customers understand what they're paying for, they pay without arguing.

10 yrsof goodwill lost over one invoice nobody could explain

Karla's ten years

Karla had taken her car to a family friend's workshop for ten years. One visit, the bill was higher than she expected. She asked what a couple of the lines were for, and nobody at the counter could tell her. The notes were scrawled, the parts had codes she didn't recognise, and the technician had gone home.

She paid, but she didn't come back. She now drives further to a workshop that gives her a clear, itemised invoice every time. It isn't cheaper. It just makes sense to her.

Ten years of goodwill, gone over one invoice nobody could explain.

What a good invoice tells the customer

  1. What was wrongIn plain words, not codes.
  2. What you did about itThe work, the parts and the labour, each on its own line.
  3. What you found but didn't doRecommended work for next time, so it's on record.
  4. What it costsA total that matches what they agreed to.

Stop typing the same notes on every job

The other half of this problem is the time it takes to write a good invoice. Technicians type the same things over and over: "Front pads at 40%", "Checked all fluids", "Road tested, no faults found." Two-finger typing at the end of a long day leads to short, messy notes, or no notes at all.

Good notes shouldn't depend on how much energy the technician has left at 5 o'clock. The faster it is to write a clear job story, the more often it gets done properly.

Where the money leaks

  • Front desk time. Explaining invoices the customer couldn't read.
  • Discounts to settle arguments. Knocking money off because the bill couldn't be justified.
  • Lost customers. People like Karla who pay once and never come back.
  • Technician admin time. Typing the same notes on every job.
  • Missing work. Things done on the job that never made it onto the invoice.

Try this tomorrow

Pull out five invoices from last week. Read them as if you were the customer. Could you tell what was wrong, what was done and why it cost that much? Fix the worst one first.

Health check  ·  question 8 of 13

Could a customer understand every line on your invoice without ringing you to ask?

Answer as you read. Your score is waiting at the end of the book.

How Workshop Software does it
  • Smart Notes. AI helps write clear job notes, so technicians spend less time typing.
  • Invoice formats. Choose the invoice layout that suits your workshop. The format changes how the invoice looks when printed or emailed, not the figures.
  • Accounting sync. Invoices sync with Xero, MYOB or QuickBooks, whichever invoice format you choose.
  • Templates. Save templates for common work, so the same notes and parts aren't typed every time.
  • Service notes from WorkshopData. Pull a service in from WorkshopData and the job comments are created automatically, with exactly what was done on that service.
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Chapter 9  ·  Pricing

What is the right price?

Most workshops have more than one price for the same part. Here's how to get it right, whoever is on the counter.

3 minute readBy James Mitchell

Most workshops have more than one price for the same part. The walk-in customer pays full retail. The fleet gets a discount. The local panel shop gets a different one. A good trade customer might get a deal on tyres but not on oil.

That's normal, and it's good business. The trouble starts when those prices live in a filing cabinet, a spreadsheet or one person's head. Then every sale depends on who's at the counter and what they remember.

25%off brake pads, applied to the whole invoice

Mark's brake pads

Mark was a trade customer at Ben's workshop. He'd negotiated 25% off brake pads, and only brake pads. It was written down somewhere in the office.

One day Mark came in for brake pads, oil, an oil filter and an air filter. Jason was on the counter. He knew Mark got 25% off, so he took 25% off the lot. Jason wasn't careless. He was trying to look after a good customer, and the information he needed wasn't in front of him.

Ben never found out. The margin on the oil and filters just quietly disappeared, and it kept disappearing every time Jason served Mark.

Get the price right, whoever is on the counter

  1. One price list, kept up to dateWhen supplier prices go up, your sell prices go up with them, not six months later.
  2. Customer pricing stored against the customerTheir discounts, on the items they apply to, and nothing else.
  3. Applied automaticallyStaff shouldn't have to remember who gets what.
  4. Consistent markupEvery part marked up the way you decided, not the way someone guessed on the day.

When the system knows the right price, your staff can serve customers with confidence. They stop guessing, stop under-charging to be safe, and stop having awkward conversations about why the price changed.

Where the money leaks

  • Discounts on the wrong items. Like Mark's 25% spreading across the whole invoice.
  • Old sell prices. Supplier costs went up and your prices didn't.
  • Inconsistent markup. The same part sold at three different prices depending on who sold it.
  • Consumables not charged. Rags, cleaners and small parts that never make the invoice.
  • Time spent looking up prices. At the counter, while the customer waits.

Try this tomorrow

Pick your five best trade customers. Write down exactly what discount each one gets and on what. Then check their last three invoices against it.

Health check  ·  question 9 of 13

Does every customer get exactly the price they're meant to, no matter who serves them?

Answer as you read. Your score is waiting at the end of the book.

How Workshop Software does it
  • Price matrix. Set pricing for an individual customer or a group of customers.
  • Parts prices that keep up. When you buy parts, update the selling price if the cost has changed, or set a markup to update it automatically.
  • Markup on the fly. Mark up a buy-in from inside the invoice by entering a percentage.
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Chapter 10  ·  Getting paid

Get paid on the day

A busy workshop can still run out of cash. Here's how to get paid before the keys go back, and keep more money in the bank.

3 minute readBy James Mitchell

A busy workshop can still run out of cash. Plenty do. The work is done, the invoices are out, and the bank account is still empty, because money is going out faster than it's coming in.

Cash flow has two sides. Get paid as soon as the work is done, and pay your own bills when they're due, not before.

Get paid before the keys go back

The easiest money to collect is the money you collect at the counter. Once the customer has driven away, every unpaid invoice becomes a phone call, an email, a reminder and an awkward conversation.

  1. Make paying easyCard at the counter, and a link so they can pay from their phone if they're not there to pick up.
  2. Take a deposit on big jobsIf you're ordering expensive parts for a job, take a deposit when the customer books. If they don't turn up, you're not stuck with the parts.
  3. Payment due on collectionMake it the standard, and say so when the job is booked.
  4. Account customers on clear termsFleet and trade customers can have accounts, with terms that are written down and followed.
Storya busy workshop that was always short of cash

Jim paid everyone straight away

Jim's workshop was flat out, but he was always short of cash. The reason surprised him. Every time a supplier invoice arrived, he paid it on the spot. He thought it was the right thing to do.

His suppliers gave him time to pay, and he wasn't using it. Jim sat down with them, agreed proper payment terms, and started paying on the due date instead. He had far more cash in the bank at any one time, and his suppliers were still paid on time.

The other side was worse. When Jim finally looked at who owed him money, the list was long, and a lot of the names were friends. He'd never chased them because it felt awkward. Once he started sending regular statements and reminders, the money started coming in. His customers joked that he must have hired a tough new bookkeeper. Nobody was offended, because nobody had to have the awkward conversation.

Where the money leaks

  • Unpaid invoices. Work done, cars gone, money not in the bank.
  • No deposits. Parts ordered for jobs that never turn up.
  • Paying bills too early. Cash out the door weeks before it needs to go.
  • Debts nobody chases. Especially from friends and regulars.
  • Late fees. Bills paid late because nobody knew when they were due.

Try this tomorrow

Print your list of everyone who owes you money and how long they've owed it. Then check your last ten supplier payments: how many days early did you pay?

Health check  ·  question 10 of 13

Do you get paid before the customer drives away, and do you know exactly who owes you money today?

Answer as you read. Your score is waiting at the end of the book.

How Workshop Software does it
  • WorkshopPay. Take card payments through Workshop Software. There's no extra cost to integrate it, just the usual card terminal and transaction fees, as with any card provider.
  • Deposits. Collect deposits through the card terminal.
  • WorkshopPay payment links. Send the customer a payment link so they can pay from their phone.
  • Reminders and statements. Print payment reminders and send statements to account customers.
  • Accounting sync. Payments sync to Xero, MYOB or QuickBooks, not just invoices.
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Chapter 11  ·  Tax and accounts

Stop the tax-time scramble

The scramble isn't a tax problem, it's a records problem. Here's how tax time becomes just a report.

3 minute readBy James Mitchell

Every workshop owner knows the feeling. The tax deadline is coming. There's a shoebox of receipts, a pile of supplier statements, and a bookkeeper or accountant asking questions you can't answer yet. Whatever your country calls it, GST, VAT or sales tax, the scramble feels the same.

The scramble isn't a tax problem. It's a records problem. If your records are kept properly every day, tax time is just a report.

Storya mechanic who decided from day one not to panic every quarter

Nick never scrambles

Nick was a good mechanic who bought his own workshop. He'd watched his old boss panic every quarter, so he decided from day one that he wasn't going to live like that.

Every invoice, every payment and every supplier bill went into one system as it happened, not in a heap at the end of the quarter. The figures were always up to date. When his accountant needed the numbers, Nick sent them the same day.

His mates who own workshops still lose weekends to their books every quarter. For Nick, the end of the year is just another week.

Why it gets expensive

When records are a mess, your accountant has to sort them out before they can do the real work. You pay for that time, often by the hour. On top of that, rushed books mean mistakes, and mistakes with tax are the expensive kind.

What good looks like

  1. Every sale recorded onceThe invoice the customer gets is the same record your accountant sees.
  2. Supplier bills in as they arriveNot stuffed in a drawer for later.
  3. Your workshop system talks to your accounting softwareNo typing the same numbers twice.
  4. Tax worked out on every invoiceNot calculated at the end of the quarter.

Where the money leaks

  • Accountant time. Paying a professional to sort receipts.
  • Double handling. Typing the same figures into two systems.
  • Mistakes. Wrong tax on the wrong items, found too late.
  • Your weekends. Time you'll never get back.
  • Late lodgement. Penalties for missing a deadline.

Try this tomorrow

Ask your accountant or bookkeeper one question: "What do you spend the most time fixing in my books?" Their answer is your first job.

Health check  ·  question 11 of 13

Could you hand your accountant everything they need for this quarter's tax today, without a scramble?

Answer as you read. Your score is waiting at the end of the book.

How Workshop Software does it
  • Accounting sync. Workshop Software syncs with Xero, MYOB and QuickBooks, so your invoices don't have to be typed twice.
  • Same figures, any format. Whichever invoice format you choose, the figures that sync are the same.
  • Supplier invoices and payments. These sync to your accounting software too.
  • Tax reporting. Get the tax on all your sales and purchases out of Workshop Software.
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Chapter 12  ·  Reporting

Know your numbers

Busy isn't a number. Here are the six figures worth checking every week, and how to act on them.

3 minute readBy James Mitchell

Ask most workshop owners how business is going and they'll say "busy". Busy isn't a number. You can be busy and losing money, and you can be quiet and doing very nicely.

You don't need to be an accountant to run your workshop by the numbers. You need a handful of figures, the same ones every week, and the habit of looking at them.

The weekly numbers

These are the figures worth checking every week. Each one ties back to a chapter in this book.

  1. Hours charged versus hours availableHow much of the technician time you paid for did you sell? (Chapters 2 and 6)
  2. Average invoice valueIs each job earning more or less than last month?
  3. Gross profit on labour and partsNot just what you took, but what you kept. (Chapters 6 and 9)
  4. Number of jobsAre more cars coming through the door, or fewer?
  5. Customers coming backHow many of last year's customers have been back this year? (Chapters 3 and 5)
  6. Money owed to youWho owes what, and for how long. (Chapter 10)

Six numbers, ten minutes, once a week. That's enough to spot most problems weeks before they show up in the bank account.

Compare yourself with yourself

The most useful comparison is your own workshop, last month and the same month last year. Your costs, your customers and your area are your own. If your average invoice has dropped three months in a row, or your hours charged have slipped, you'll see it early enough to do something about it.

Turn numbers into one action

Numbers only matter if they change what you do on Monday. Each week, pick the one figure that looks worst and do one thing about it. If hours charged are down, look at the diary. If average invoice is down, look at what's being recommended and not followed up. If money owed is up, make the calls.

Where the money leaks

  • Running on feel. "Busy" hides a lot of problems.
  • Looking too late. Finding out at tax time what went wrong in the first month of the quarter.
  • Too many numbers. A 40-page report nobody reads.
  • Numbers with no action. Looking every week and changing nothing.
  • Numbers you can't trust. Because the data going in was incomplete.

Try this tomorrow

Write down the six weekly numbers for last week, as best you can. The ones you can't find are the first thing to fix.

Health check  ·  question 12 of 13

Do you look at the same handful of numbers every week, and act on what they tell you?

Answer as you read. Your score is waiting at the end of the book.

How Workshop Software does it
  • Workshop Intelligence. Graphs and insights on your own workshop's numbers, to help you run a more successful workshop.
  • Mechanic reports. Including the Mechanic Performance report, which compares hours worked with hours charged.
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Chapter 13  ·  Your team

Find and keep good technicians

If there's nobody to do the work, nothing else matters. Here's what good technicians want, and how to keep them.

3 minute readBy James Mitchell

Ask any workshop owner what holds them back, and sooner or later they'll say it: "I can't find good people." You can fix your bookings, your invoices and your pricing, but if there's nobody to do the work, none of it matters.

Good technicians have choices. They can work anywhere. The question isn't only how you find them. It's why they would choose your workshop, and why they would stay.

What good technicians want

It isn't only money, although pay has to be fair. Talk to good technicians about why they left their last job and you'll hear the same things:

  1. A steady flow of workNobody likes standing around one day and being buried the next. A well-run diary is a better place to work.
  2. The right tools and informationIncluding the technical data to do modern cars properly, without guessing.
  3. Less paperworkThey became technicians to fix cars, not to type notes and chase approvals.
  4. A clean, organised workshopSomewhere they're proud to work.
  5. A futureTraining, new skills, and a path to something bigger.
  6. RespectBeing trusted, being thanked, and being told how they're going.

Notice how many of those come back to the earlier chapters. A workshop with good systems is a better place to work. That's a reason to fix them that has nothing to do with customers.

Picture two job offers

Picture a good technician choosing between two workshops offering the same pay. The first has a whiteboard, a paper diary and a boss who walks out every half hour asking how it's going. The second has a planned day, the job details on a phone, the technical data on screen, and a boss who leaves them to get on with it.

Most good technicians pick the second one. And they tend to stay.

Keep the ones you've got

It's cheaper to keep a good technician than to replace one. Losing one means lost labour while the job is empty, the cost of finding someone, and months before the new person is up to speed.

  • Sit down with each technician regularly. Ask what's getting in their way. Then fix one thing.
  • Share the numbers that matter to them. Hours charged, comebacks, and a thank you when they're doing well. Measure fairly, and never use the numbers to embarrass anyone.
  • Train them. New vehicles keep changing. Technicians who keep learning stay interested, and stay longer.
  • Grow your own. Apprentices trained your way become the senior technicians of the future.

Get new people productive fast

The first weeks decide whether a new starter stays. Have their tools, their logins and their first jobs ready on day one. Show them how your workshop runs, not just where the toilets are. The faster they feel useful, the faster they become useful.

Where the money leaks

  • Empty bays. Work turned away because there's nobody to do it.
  • Turnover. Recruitment costs and months of lower output every time someone leaves.
  • Slow starters. New staff who take months to learn how things work.
  • Good technicians doing admin. Paperwork instead of paid work.
  • Burnout. The best people carrying the workshop until they leave.

Try this tomorrow

Ask each technician one question: "What's the most annoying thing about working here?" Write the answers down. Fix the most common one this month.

Health check  ·  question 13 of 13

If your best technician got a call from another workshop tomorrow, would they have a good reason to stay?

Answer as you read. Your score is waiting at the end of the book.

How Workshop Software does it
  • Information at hand. WorkshopData puts manufacturer data, labour times and wiring diagrams in front of the technician, inside the job.
  • Less typing. Smart Notes helps technicians write clear job notes faster.
  • On their phone. The native mobile app and team notifications keep everyone up to date without walking and asking.
  • New starters up to speed. Workshop Assist, opened from the question mark button in the app, has an onboarding checklist, guided tours and the knowledge base, so new staff can learn the system without someone standing over them.
  • Backed by our team. Support by phone, email and online chat when someone gets stuck.
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The end, and the start

Closing the leaks

Thirteen leaks, one workshop. Here's where to start, and a plan for your first 90 days.

3 minute readBy James Mitchell

If you've read this far, you'll have noticed something. None of the 13 problems in this book will close your workshop on its own. A few no-shows, a stale price, a discount on the wrong items, an hour a day lost to walking and asking. Each one on its own looks small.

Together, they're the difference between a workshop that's busy and a workshop that's profitable. Joe lost $15,000 a year on one service. Billy lost five hours of labour a day. Karla walked away after ten years. None of them were bad at their trade. They just couldn't see where the money was going.

That's the good news. You don't need more customers, longer hours or a bigger workshop to make more money. Most of the profit you're missing is already coming through your door. You just need to stop it leaking out the other side.

Start with your score

If you answered the health check question at the end of each chapter, you already know where to start. Look at the ones you answered "Not really". Those are your biggest leaks.

Don't try to fix all 13 at once. That's how good intentions die by Wednesday. Pick three.

Your first 90 days

Month 1: the quick wins. These cost little and pay back fast.

  • Send the four messages from Chapter 5 on every job.
  • Ask every happy customer for a review (Chapter 1).
  • Check your three most common fixed prices against how long the jobs really take (Chapter 6).
  • Chase everyone who owes you money (Chapter 10).

Month 2: fix the system. Pick the two or three leaks from your score that cost you the most, and fix how the work is done, not just this week's numbers. That might be the diary (Chapter 2), job status (Chapter 7) or pricing (Chapter 9).

Month 3: build the habit. Start looking at the six weekly numbers from Chapter 12 every week, at the same time. Then pick your next three leaks and go again.

You don't have to do it alone

You spend good money on the right tools for the floor: hoists, scan tools, quality spanners. You'd never ask a technician to work without them. The systems that run the business side of your workshop deserve the same thinking. Good ones pay for themselves many times over, quietly, every day.

That's why we built Workshop Software. It's what this book has been about from the first chapter: one system for your bookings, your jobs, your customers, your invoices and your numbers, so the business side runs properly and you can get back to what you're good at.

A last word from me

I've spent decades working with workshop owners. The same problems come up again and again, in big workshops and small ones, everywhere we work. And almost every time, the owner is brilliant at the trade. Nobody ever taught them how to run the business side. That's not a failing. It's just a gap, and it can be filled.

I wrote this book to fill some of it. I hope at least one chapter made you stop and think, "that's us". If it did, fix that one first. Then come back for the next.

If you'd like to see how Workshop Software can help, start a free trial at workshopsoftware.com. And if you'd rather talk it through, our team is there by phone, email and online chat.

Here's to a more profitable workshop.

James Mitchell
CEO, Workshop Software

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