On a scale of one to 10, how much would you like to run your bitter rival out of town? 27? 100? 300? Usually, there’s no love lost between car repair shops, with some declaring an all-out war on a rival. As an entrepreneur who is passionate about cars and making money, you have no time for such fights.
Not when you have an industrial plasma table from Baileigh in your shop anyway. See, pricing wars breakout when you’re both targeting the same limited market. You only need to think bigger, and you focus your time, energy and resources on getting a larger slice of the market.
Make a foray into the car aftermarket
In the United States, the automotive aftermarket, including the heavy and medium-duty vehicles, is a multi-billion-dollar sector. This industry generated northwards of $350 billion in 2017, with insiders predicting nothing but good tidings. At the projected 3.4% annual growth, the industry is expected to top the $433 billion mark by 2021.
Now, these numbers might be mindboggling, but they let you know one thing – there’s a vast market of car enthusiasts that’s ready for the taking. You only need to step up your game and tap into the motherlode. Not only would that grow your revenues exponentially, but can also let you sidestep the needless turf wars with your rivals.
You also have the option of joining the small, specialty equipment market, a subset of the aftermarket sector. This market supplies accessories and performance parts to motoring enthusiasts. Currently, it’s a $43 billion industry with a projected growth of 4%.
Increase your clientele
Specialty and aftermarket parts attract an entirely different caliber of car enthusiasts and could be the break you need to beat the competition. Many of these people are willing to splurge on parts on services to keep their cars in top gear. This crowd includes drag racing enthusiasts, the off-road group, and others.
They would make a decent addition to your regular drivers popping up for routine care and maintenance. Car modifications and accessorizing are significant projects that will lead to a considerable improvement in your cash flow. They also take longer meaning that you will keep busy for a long time.
Conquer the online space
Having specialty production equipment and the skills to wield them to boot opens a world of possibilities for your shop. In addition to increasing your walk-in customers, you get to increase your business reach. You can harness the power of the internet and grow your sales.
As much as 38% of the specialty equipment and accessories sales happen online. You get to recruit customers from all corners of the country, which is great for your cash flow.
It helps to think creatively when you’re up against the stiff competition when trying to grow your business. Having the right tools and equipment can help you beat your rivals and avoid a messy race to the bottom that is the pricing or turf war.
Instead of wasting time in a losing battle, you can focus your energies towards getting a bigger slice of a multi-billion dollars sector.