5 Ways to Reduce Labor Costs at Your Auto Body Shop

As the business owner of an auto body shop, you're always looking for ways to cut costs and increase your revenue. Labor expenses constitute a significant component of operational overhead, but there are ways that you can reduce your labor costs. Keep reading to discover five tips for optimizing labor expenditure.

1. Control Overtime

Overtime can decimate any profit margin you have on a job. Therefore, it is important to develop a method of better determining the labor hours of a project and scheduling delivery in a way that doesn't encourage extensive overtime hours.

2. Optimize Productivity

You can optimize productivity and reduce labor costs by implementing several strategies, including employing the right mechanic on the right job, implementing a lean management system, and utilizing effective scheduling software to increase efficiency.

3. Supplement Full-Time Workforce

Don't be afraid to hire a couple of part-time employees or mechanics. This can help cut your overtime costs and increase the amount of work your collision repair center can take on.

4. Combine Vacation and Sick Time

When you combine vacation and sick time into one paid time off (PTO) program, you'll find that it lowers your administrative costs and time spent by managers determining if the time off should be taken from sick or vacation time.

5. Hire Strategically

Strategically hiring skilled technicians and fostering a culture of continuous improvement can significantly reduce labor costs. By recruiting employees with specialized certifications and experience, your auto body shop can enhance efficiency, minimize repair time, and reduce the need for costly outsourced specialists.

Partner With Collision Resources to Reduce Labor Costs

At Collision Resources, our scheduling software solutions, CR Auto Scheduler^® – Production and CR Auto Scheduler^® – Estimate, allow you to strategically schedule appointments, improving efficiency and reducing labor costs. To learn more about our scheduling software solutions, contact us today!