About State of the Nation
Capricorn State of the Nation 2020 is the first in what will become an annual research project designed to gain an in-depth understanding of what's happening in our industry and what's important to Capricorn Members.
-
15% NSW/ACT
-
17% QLD
-
10% SA/NT
-
23% VIC/TAS
-
13% WA
-
22% NZ
5 Key Takeaways for Auto Repair Shop Owners
1Work-life Balance
Members have told us they struggle to maintain work-life balance, yet it is a crucial first step to long-term success
2Succession Planning
Succession planning is a big, gaping hole across the board - alarmingly so in Members moving towards retirement age
3Know Your Value
Members need to get savvy about what services we charge for and how much they charge
4Passive Marketing
Our Members are too reliant on passive marketing streams like word-of-mouth referrals and repeat customers
5New generation
To attract a new generation, the industry is going to have to show a much more lucrative value proposition to running an auto repair business
Get the full story on CapHub
Biggest Challenges Facing Automotive Industry
-
Changing technology
49%
-
Lack of qualified staff
44%
-
Lower margins
41%
-
Access to technical information
37%
-
Attracting young people to industry
35%
-
Capped price servicing/long warranties
32%
-
Price comparison platforms
24%
-
Lack of trust from consumers
19%
-
Electric cars
19%
-
Lack of structured training/accreditation
18%
-
Environmental considerations
18%
-
Other
5%
Setting Prices on Parts
By Business Type
| Total | |
|---|---|
| Add a set % mark-up for all parts | 43% |
| Matching the retail price | 35% |
| Decide the mark-up depending upon the cost of the part | 27% |
| Using your best judgement | 24% |
| Decide on the mark-up depending on the nature of the job | 21% |
| Other | 4% |
| Don’t know | 1% |
Do you fit customer supplied parts?
68%
Hourly rates for labour need to increase significantly to lower the financial impact on your business when customers supply their own parts... Keeping parts’ prices competitive will mean the customer has nothing to gain by purchasing their parts online. These workshop owners told us what’s working for them, challenges they are experiencing, and other insights on a range of topics from technology, the future of the workforce, customers and the case for charging more.
Reasons for level of Confidence in Business's Future
-
Loyal/returning customer base
19%
-
Business growth/will continue to grow
18%
-
Longevity/time in business
13%
-
Changing industry/tech
12%
-
General negative (eg: workload, competitors)
13%
-
Staff/team
9%
-
Confidence in their offer/passionate
9%
-
Good operations & investment
8%
-
Financial factors
8%
-
Good word of mouth
7%
-
Economic/environmental changes
6%
-
Other
3%
-
No reason/don’t know
2%
$882,000
The approximate average annual turnover for Members
24 Years
Members have been working an average of
in the industry and running their own workshop for 18.
Get the full story on CapHub
Why are vehicles sent to dealers?
-
Software Updates
67%
-
Diagnostics
41%
-
Sensor Alignment
27%
-
Other
12%
If Members fail to keep up with technology, they will eventually go out of business. Keeping up with technology is critical for our Members’ future success.
Diagnostic Costs
Scan Tools & Time Taken
Know your value. Charge more because you’re worth it. No one wins in a race to the bottom.
Get the full story on CapHub
Quick Wins
Industry advice to fast-track business growth.
Full Data and Analysis
Broken down by business sector type
Parts pricing and wages
Find out what other Members are paying.
Marketing Information
See how other workshops are promoting themselves
Technology Trends
What new tech is being used and what does it mean for you
What success looks like
How you can measure success