Dave Redinger
davidredinger@rogers.com

September 25, 2009

Garage Business

Throw Away the Abacus

 
If you’re still running your business the “old-fashioned way” and shunning technology, perhaps it’s time to take a closer look at how management software can make you more productive.
 

For years, we avoided taking the plunge into the world of “management software.” I always believed that keeping things simple was the easiest way to run a shop, and I wasn’t about to change my mind. Then, one day at a NAPA event, I met the folks from LANKAR, and they demonstrated the LANKAR system for invoicing and accounting.

At first I didn’t buy it. After all, I’m no pushover and I’m not easily convinced. But keeping an open mind, I eventually accepted a visit from one of their reps, listened to what he had to say, and eventually decided to take the plunge. We were sold.

I don’t want this to sound like a commercial for LANKAR, as there are plenty of other shop management systems out there. Many of them are better in some areas than the system we chose. LANKAR, to be frank, was the one we chose because it fit our situation the best.

Before making a buying decision, I would advise any shop owner to do their homework, look at the options on the market, and then decide which system would work best in their shop.

Electronic accountant
So what does a shop management system do? Frankly—plenty!

First off, let me warn you that in order for shop management software to do what it’s supposed to, everyone in the shop has to be up-to-date on how the software works, and they have to buy into the idea as well as take the time to fi ll in the blanks.

The old adage, garbage-in-garbage-out, applies and if the stuff going into the customer base is of poor quality or incomplete, the results will be disappointing or worse—completely useless.

The primary job of any system is to generate invoices while at the same time generating a client history. Our system invoices clients, keeps records of their individual histories, keeps parts prices in memory, accepts a parts matrix and best of all calculates “environmental and consumables” charges automatically.

I now have the information I need in order to run
my business in lieu of simply running a shop.
 

In short, our system takes the guesswork out of writing an invoice. Moreover, we actually picked up on sales by making fewer mistakes when generating the work order.

I should add that the LANKAR system will not let you scroll your invoice list. It only allows you to bring up individual invoices. I think this is a shortcoming, especially when you need to search the day’s business.

Running a business

The system generates financial reports that allow me to calculate my total sales, parts sales, labour sales, hours per work order, average work order size, shop and tech efficiency, etc. In short I now have the information I need in order to run my business in lieu of simply running a shop.

As is the case with almost any new electronic device or software system you might  nvest in, we still haven’t utilized all of the features available on our system. In fact it’s on my to-do list, and I’m planning on getting the LANKAR folks back for an update on the available features.

Most importantly, your system should hook up with your customer contact service. We use Mechanicnet. They then enter our system and download invoices that are over 90 days old. Their system then generates a postcard and mails it directly to the client.

The reminder system has taken us a long way and helped us to make the change from a breakdown shop to a maintenance shop. As an owner, I can see these systems working together in developing a steady and constant growth, even in these harsh economic times.

I now have the information I need in order to run my business in lieu of simply running a shop.
 

Dave Redinger is a mechanic with over 40 years experience. He owns and operates his own shop in the Toronto area. Dave hosts the Neighbourhood Mechanic show, heard on Chum 1050. The Neighbourhood Mechanic can be seen on Dave’s national Television show on E Channel. Both shows deal with automotive issues.