Spiro Morogiannis | BG Training Manager and BGU Instructor
As you enter the new year, it’s time to review what worked in 2024, but also implement changes needed to drive continued growth through the new year. Adopting a mindset of constant improvement will yield positive results. While each shop faces unique challenges—like employee retention, high tooling and diagnostics costs, and inconsistent labor times—simply refining existing shop processes can make a significant difference in shop profitability in 2025.
Setting strategic goals focused on financial success, staff development, customer engagement, and process efficiency is crucial. Investing in training, goal incentives, and process conformity will foster growth, as a committed team will in turn invest in your success.
Set Lofty, But Achievable Goals
Assess 2024 Performance
Review your 2024 KPIs (Key Performance Indicators). If you’re not using a quality shop management system, consider investing in one—it can elevate your business from “getting by” to thriving. Key metrics like labor efficiency, job GP%, and bay turnaround are areas that can quickly boost profits.
Establish New Targets
Set revenue targets but focus on labor efficiency (productivity %). Jobs like quick-turn suspension repairs or preventive maintenance with high labor efficiency can drive profitability more than labor-intensive heavy line jobs.
Manage Expenses
Be mindful of expenses without sacrificing quality. I follow the rule: “Get the best quality you can afford,” as it pays off in the long run, whether it’s for parts, fluids, or tools.
Invest in Technology
Technology is crucial. From shop management systems to diagnostic equipment, look for upgrades that yield high ROI. Focus on cost-effective improvements that generate quick returns, helping you fund bigger investments for future growth.
Build A Strong Team
1. Hiring and Retaining Skilled Employees
What sets your shop apart? Focus on training and setting individual goals to drive employee
retention. Many techs leave because they aren’t offered training or opportunities to grow. Make
development a key part of your shop’s operations to stand out.
2. Training and Upskilling
“Invest in your people and they’ll invest in you.” Continuous training not only improves skills but
also enhances retention. A well-trained team is your shop’s success!
3. Leadership Development
Your team leads are the backbone of your business. Invest in leadership training and encourage
personal growth so they can take on more responsibility. Developing leaders improves your
entire operation.
4. Team Morale and Engagement
Employees need more than just expectations; they need purpose. Incentives, clear processes,
and owner accountability fosters engagement. Lead by example, explain why things are done,
and create a workplace where employees feel valued and motivated to contribute.
Expand Your Customer Base
Build Stronger Customer Relationships
Start with retention. What sets you apart? Effective communication, managing customer expectations, offering options, and having a solid MPI process will build trust. Remember, you are their trusted automotive professional—never breach that trust.
Marketing and Outreach
Effective marketing isn’t only about coupons or discounts. Use social media to share success stories, reward loyal customers unexpectedly, and ask for referrals. Remind customers why they choose your shop over others. Additionally, email marketing can keep customers engaged with special offers, maintenance reminders, and updates about your services.
Create an Outstanding Customer Experience
You’re in the people business, not just car repair. Show you care through timely communication, clear options, and a process that keeps customers informed about their vehicle’s needs today and in the future. Exceptional customer service is rare—make it your shop’s hallmark.
Develop Partnerships
Forming partnerships within 20 groups, coaching services, and parts suppliers is crucial for growth. Don’t try to do it alone—these connections provide essential resources and support for your success.
Implementing Strategies
Break Down Goals into Actionable Steps
Start with the “low-hanging fruit”—process management, quality control, and thorough work that reduces comebacks and downtime. These basics fix many other areas of your business. For example, implement a 100% MPI process with a clear system for marking vehicles red, yellow, or green. Whether paper or digital, this step protects and drives your shop forward. Invest in high-ROI areas first to free up time and resources for additional goals.
Track Progress and Adjust Goals
It’s okay to adjust goals as long as you’re maintaining momentum. Set clear expectations, track progress with charts, and regularly review goals with your team. Consistent meetings help visualize where you are and where you’re headed.
Hold Yourself and Your Team Responsible
Accountability starts with you—the owner or manager. Lead by example, as you’re setting the standard for your team. Without accountability, goals won’t be achieved. You must embody the work ethic and standards you expect from your team.
Final Thoughts
Having a plan for your shop is half the battle, as it’s easy to get sidetracked by the daily grind of automotive repair and maintenance. Goal setting isn’t a one-time event—it’s a continuous process of self-accountability, implementing and revising systems, and setting high standards. As you work toward your goals, many things will naturally fall into place, and it’s crucial to regularly assess what’s working and adjust what’s not.
With 2025 here, now is the perfect time to take the next steps for your shop. In a market where people are holding on to older or used cars and new vehicles are less affordable, you have a prime opportunity to grow customer retention and capture business. The industry’s trends are in your favor—now’s the time to play your hand.
About the Author
Spiro Morogiannis has more than 15 years in the automotive industry, with 8+ years at BG Products. With a deep understanding of maintenance and repair operations and specializing in independent automotive shops, Spiro brings valuable insights into best practices and industry trends.
