My auto repair shop is losing money. What should I do?
Most shops that lose money have a few fixable leaks: labor priced too low, high payroll, unbilled parts or marketing that doesn't work. Fix those first, then decide.
If this sounds like youSales look OK, but the money isn't there at the end of the month, and it's getting worse.
What you can do.
Find the leaks
Labor rate, payroll share, parts profit and ad spend.
Get outside help
A coach or a system that shows the numbers clearly.
Sell before it gets worse
A shop with good bones and a building still has real value.
What to watch for.
- Debt and back taxes make a sale harder, so act early.
- Don't cut the techs who bring in the work.
- A buyer values the building even when the shop struggles.
Owner to owner, and it stays private.
Lotus buys shops at every stage, including ones that are struggling, especially when the building comes with it. We bring our own systems and team to turn it around.
Talk to JamesQuick answers.
Can I sell a shop that's losing money?
Yes, especially with the building. Buyers like Lotus look at what the shop could be.
What's the most common reason a busy shop loses money?
Labor priced below cost and payroll that's too high for sales.
Thinking about what comes next for your shop or building?
Reach out and we’ll talk it through. No pressure, and the conversation stays private.
james@lotuspe.us