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Seasonality of the question: how to prepare in the workshop?
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Seasonality of the question: how to prepare in the workshop?
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Seasonality of the question: how to prepare in the workshop?
Hello, and Welcome to Racext’s Car Magazine column, the column aimed exclusively at the world of 4-wheeled vehicles with news, insights and guides, available every day here racext.com, today in this article we will talk about “Seasonality of the question: how to prepare in the workshop?”
Seasonality of the question: how to prepare in the workshop?
The movement of customers is not always the same in the workshop. It can vary due to a variety of factors, such as the season of the year, the proximity of holidays or anniversaries, the schedule of events in the city and, of course, the occurrence of economic downturns. All this causes the seasonality of business demand.
This phenomenon affects all businesses, albeit at different levels. Hotels in a tourist city, for example, will be busier during holidays and vacations. Already an ice cream parlor suffers a drop in demand in the colder periods. And what would be the effects of seasonality in the workshop?
If you want to know more, you will like the complete post we have prepared. Check out our information and find out how to plan!
How to understand the seasonality of your business?
Seasonality of demand refers to the changes that occur in the demand for products and services over time. It can be positive or negative. In other words, there are times when businesses see more customer movements, while others experience a decline in demand.
These fluctuations are inevitable. Therefore, it is necessary to understand them and try to adapt to them. Experienced entrepreneurs are often able to easily diagnose seasonality. But some strategies can help confirm the data. The first is to research the topic and analyze the movement of workshops in general.
In the field of mechanics there are some common variations, such as the increase in maintenance demand on the air conditioning and cooling system in the hottest periods. Likewise, winter weather tends to increase the demand for a vehicle battery overhaul or replacement.
In rainy weather, customer movement in the workshop can also increase. Furthermore, there is a very significant increase in the weeks leading up to the school holidays. Since many families take advantage of this to travel , it is necessary to carry out preventive maintenance on the vehicle.
Normally, at the beginning of the year, every trade collapses. This is due to the expenses incurred in December and the proximity of important accounts, such as enrollments, school materials and taxes.
This information helps you understand the seasonality of demand in your business. But for a more accurate diagnosis, the ideal is to analyze the workshop reports. Having good financial control is useful for evaluating fluctuations in customer movements over the months.
How to prepare?
Now that you know how to diagnose movement, take a look at our tips to be prepared and enjoy the best of every period in the shop.
Plan management based on dates
Running a business is not an easy task. If you do this without considering important business information, you can make several mistakes. Therefore, one of the most basic data when planning your actions is the seasonality of demand.
Being guided by the busiest and slowest dates allows you to both take advantage of the good times and minimize the effects of reduced services. We can think, for example, which is the best month to make a big promotion: the one known for high demand or the one with a market depression?
The correct answer is the second option. Promotions are great ways to get around the effects of negative seasonality, as you encourage customers who wouldn’t normally go to the shop at the time. In the peak phases, you can enjoy greater profits, without having to invest so much in promotions and discounts.
Another seasonal decision concerns employees . Ideally, the holidays should be planned for moments of less movement. Also, the size of the team must follow the average demand, so that there are no overspending. In times of high demand, such as the end of the year, it is best to do the math and find out if it is worth hiring temporary workers.
forecast stock
Inventory management is also about seasonality in the store. Shopping based on sales performance can save you money, avoid product strandings, and avoid the risk of losing customers due to missing items.
On the eve of a vacation, for example, it’s very common to meet customers for a background review before traveling. The most requested services concern tire change, alignment and balancing, oil change, etc. It is therefore necessary for the workshop to organize itself to increase the stock of the most requested items and to satisfy the demand well.
Identifying the specifics of stock movement is not that simple. The ideal is to have effective control, preferably on a computer system. By frequently tracking your inventory, you can log everything and have effective reports for any time of the year – they give you a more reliable forecast to know what to buy.
assemble a cash flow
Corporate finances should not depend entirely on seasonal demand periods. If this happens, the entrepreneur can face serious difficulties in periods of less movement. It is important to remember that regardless of the month, the costs of payroll and basic bills remain the same. So, how can we not go red in the face of a lack of customers?
The solution for this is to have working capital and a financial reserve. Therefore, the firm’s profit should be calculated from the annual average and not from the periods of greatest input. High financial yield months provide security for moments of lower results soon after. Therefore, weaker sales do not pose a risk to keep the company on the market.
Good after-sales
A very interesting strategy for getting around the challenge of seasonal demand is building customer loyalty . In this sense, after-sales actions are fundamental. They allow to accompany the consumer and encourage him to continue looking for the workshop to solve his problems.
Having loyal customers makes the business less exposed to the effects of seasonality in the automotive market . After all, people who trust your job will find it easier to search for it, regardless of the time of year. A good after-sales technique is to save the owner’s data and send information about the vehicle, reminding him of the necessary revisions.
The seasonality of demand is a reality in mechanical workshops and deserves a lot of attention. Not being guided by it can generate many difficulties in the management of the company. To avoid them, follow the guidelines we have provided in this post and get ready!
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Seasonality of the question: how to prepare in the workshop?
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