Navigating Change: How to Adjust Your Collision Repair Business Plan During Market Shifts

Market fluctuations impact every industry, and collision repair is no exception. These shifts affect more than just supply chains and vehicle repair timelines—they also influence consumer spending habits, making customers more cautious. However, with strategic planning and a strong foundation, collision repair businesses can navigate these challenges and remain resilient. Implement these proven business strategies to position your company for long-term success and profitability.

Understand How the Markets Affect You and Your Business

As market conditions evolve, collision repair businesses feel the effects in tangible ways. From rising costs to changes in parts availability, these shifts influence daily operations and long-term planning. To stay competitive and profitable, it’s important to evaluate how your shop is positioned. Key areas to assess include:

• What parts are more expensive?
• What repair services are people likely to go without to reduce costs?
• To what extent do you primarily work with insurance companies so your customers don't have hefty out-of-pocket costs?
• Can you rely on your staff to be available long-term without a lot of turnover, and what can you do to make your staffing more consistent?

Reevaluate Your Financial Projections

You may have already created financial projections that outline monthly budgets, expected revenue and profit, and the cash flow needed to keep operations running smoothly. However, based on your current performance, it might be time to revisit and revise those numbers. Making conservative adjustments now can better position your business to handle potential downturns and stay financially stable.

Assess Your Pricing and Services

Reevaluate both your services and prices. Determine which services are too cost-prohibitive or have too little demand in the current climate, and zero in on your business's main sources of revenue. You can also strategically adjust your pricing, either to account for more expensive parts or to bring new business to your door.

Look for Opportunities to Increase Operational Efficiency

Inefficiencies can hurt any business, even during strong markets. But they can be especially devastating when your margins are low and costs keep climbing. Look for wasted time, opportunities for automation, and frequently repeating mistakes that you can work to reduce.

At Collision Resources, we help collision repair centers adjust their business plans and create unique strategies for efficient operations. To learn more about our body shop consulting services, contact us today.