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1 2007 ALLDATA LLC. All rights reserved. ALLDATA is a registered trademark of ALLDATA LLC. ATI is a mark of Automotive Training Institute. Reproduction of this guide is strictly prohibited.

2 Hi, I m Chris Chubby Frederick, President of ATI. If you are holding this guide in your hands right now, congratulations. You have already made a decision to improve your business and your life! A good shop management system is essential to help you stay in the game in today s highly competitive business environment. A current business model has to emphasize scheduled maintenance for profitable customers over sporadic repairs, which eat up time in diagnosing the problem. And today s more reliable vehicles mean fewer repairs anyway. As you read this guide, you will come to understand that this is an important decision. A good shop management system is more than an easy way to write up estimates. It can mean a paradigm shift in the way you do business. Using a system won t be easy at first, but nothing worth doing is. In the long term, it WILL be easier much easier! Once you decide on which system will help you reach the goals you have set for your shop, make the commitment to learn every feature. I can t emphasize enough how important training is in mastering your software. Guide to Buying Shop Management brought to you by Chubby Frederick of ATI Table of Contents Shop Management Systems are here to stay! The decision starts with your needs Who will benefit from this guide? Still using pen and paper? Upgrading from your current system? I. The risks of NOT using a shop management system II. Keys to value III. Specific qualities IV. Support and training V. Go for it! VI. Comparison checklist Notes Again, congratulations on starting down the road to greater productivity and prosperity. Chris Chubby Frederick President of the Automotive Training Institute 2 3

3 Choose the right Shop Management Software for YOU! A new way of thinking a better way to profit Manual forms and accounting leave room for costly errors. Shop Management Systems are here to stay! If you fix cars for a living, you know how technology has dramatically changed the repair business. And to succeed in today s competitive world, your front-office technology must keep pace. Running a successful business requires focus, skill AND professional-grade tools. A good Shop Management System (SMS) is essential. Your competitors, from dealerships to small independent shops, are using SMS programs for good reason. The tools built into a powerful, well-designed Shop Management System can help you maximize profits, cement customer relations and make each day much easier. The decision starts with your needs. The #1 goal of most shop owners is to increase profitability. Does that mean attracting more customers maximizing your revenue per ticket servicing fewer, yet more profitable customers? Only you can decide what your specific goals and objectives are. A Shop Management System should do more than just automate a few routines it should help you achieve your business goals. Even the lowest-end system will include features to lighten your workload. Yet, as you begin to realize some improvement, you will better understand how your program should help you get where you want to be. Who will benefit from this guide? STILL USING PEN AND PAPER? Before purchasing a Shop Management System, establish the goals and objectives for your business. Switching from a manual system to shop management software is not that difficult. Once you enter your customer information, some parts and your shop jobs, most functions will simply be point-and-click, eliminating most typing. You will soon be wondering how you ever got along without your software. Take advantage of any training offered by the provider. Training quickly gets you on your way to reaping the rewards of greater efficiency and more effective business controls. Why try to learn on your own all the benefits within your system? While you may figure it out on your own, you may miss out on some powerful features that could greatly simplify your day-to-day operations and increase your profits. Why not let the people who designed the system help you? Important: Beware of superficial features that do not add value. It takes more than those proverbial bells and whistles to further your business goals and objectives. Important: You should consider purchasing a system that offers FREE comprehensive training for you and your employees. If training is not free, the charge should be minimal. 4 5

4 UPGRADING FROM YOUR CURRENT SYSTEM? First, ask yourself how your current system does NOT help you meet your shop s business goals and objectives. Don t just look for glitzy new features; more buttons can just complicate your life, without adding value. Identify your needs, along with the shortcomings of your present product. Important: Even if you are familiar with Shop Management Systems, you will benefit from training to learn all the advantages of your new software. I. THE RISKS OF NOT USING A SHOP MANAGEMENT SYSTEM Efficiency vs. deficiency at the counter, in the shop, in the office Today s changing business climate requires you to pay close attention to the business of business, just as evolving technologies require new strategies for fixing cars. Here are some of the risks you run if you do not use a Shop Management System. 1. Protecting Your Revenue Stream Vehicles are more reliable than ever and warranties are getting longer. Unless you demand more revenue from each ticket, your profits will begin to erode. 2. Competition Dealers and savvy independents use Shop Management Systems to work efficiently and profitably. Dealers currently enjoy a 30% market share. You must operate more effectively to counter their marketing dollars and extensive resources. 3. Time Management Everyone is busy; customers are no longer willing to wait in a long line while you write up estimates. They will go where the process is more efficient. Faster write-ups are just one of many time-saving benefits. 4. Operational Efficiencies To successfully compete in the marketplace, you must improve operations, increase revenues, reduce expenses and exploit all revenue-producing opportunities. Sophisticated reporting capabilities will let you easily track customers, expenses, revenue, or technician efficiency. And it is a simple task to adequately track and charge for legitimate overhead items, such as shop supplies and hazmat items. 5. Liability Management Adherence to industry standards may offer some protection from customer and regulatory agency complaints in terms of bookkeeping, invoicing, disclosures and integration with third-party accounting software. 6. Customer Relations You will miss an opportunity to satisfy customers (and improve profitability) unless you can: Effectively track and recall recommended and declined services Easily check maintenance schedules Send service reminders 6 7

5 II. KEYS TO VALUE Your technicians have the tools they need. Do you? Basic objectives help you stay focused on your goal. Important: If your goal is to maximize the revenue from each ticket, you need your shop management system to help you address these basic business objectives: 1. Improve productivity through automation. 2. Analyze operations and identify profit opportunities through detailed reporting. 3. Improve profitability with appropriate markups. 4. Manage inventory for improved profit and sales. 5. Ease the burden of bookkeeping. 6. Increase your revenue through scheduled maintenance and declined services. Save Recommended and Declined Services for Next Visit Automatically retrieve previously declined services and add them to an estimate on the customer s next visit. Your customer will appreciate that you remembered, and you may profit from an often overlooked opportunity. Data Validation Protect yourself! This feature gives you the option III. SPECIFIC QUALITIES to set certain customer information that may be required by law in your area. Information such as the mileage, can also protect you from invalid warranty claims. Benefits vs. buttons Look for features that support your goals and objectives. Shop Jobs A shop jobs feature instantly and automatically imports When evaluating Shop Management Systems, it is easy to just compare feature-for-feature. However, a long list of checkmarks does not tell the whole story. A good system should simplify your day-to-day operations. Flashy features may add complexity without adding functionality. What good is a button if you never press it? Here are some features that will add value to your system: Estimating Flexibility Easily compares parts of different prices. On a brake job, for example, you can educate your customers, while giving them the option of quickly and easily choosing between three distinct brake pads. Explaining the differences may offer an upsell opportunity. 8 the right parts and labor for routine jobs. When writing estimates, you should be able to quickly access vehicle-specific parts and labor for recurring jobs (e.g., oil changes, brake jobs, etc.). When you change the vehicle, the estimate should automatically reflect the correct parts and labor time for the specific vehicle you choose. Maintenance Schedules Entering the vehicle s mileage on the estimate automatically imports manufacturers maintenance schedules, along with vehiclespecific parts. You will maximize your revenue per each ticket, while helping your customers maintain their vehicles in top condition. 9

6 Price Matrix A price matrix automatically applies and displays your selected markup (as either a dollar amount or a percentage) for parts from multiple sources. It allows you to protect your markup on inexpensive parts, while helping you avoid overcharging on high-ticket items. If you change your selection from an OEM part to an aftermarket part, the price matrix will reflect the change. This valuable tool provides a quick visual check of your profit picture. Profit Indicator A means of quickly determining what jobs and even line items are profitable (not just the entire ticket). This is something you absolutely need to know. It should warn you if required data is missing, if your markup is not met or if any line item is not profitable before you present the estimate. A Profit Indicator is a final check to help you protect your profits. offer quick fixes or up-sell opportunities. TSBs Automatically displays Technical Service Bulletins for the selected vehicle. TSBs can Appointment Scheduler / Calendar Imports online appointments from customers or offers an easy tool for manually scheduling appointments. Your scheduling tool should automatically convert appointments to repair orders. Accounting Integration Automatically imports posted invoices into standard account software, such as QuickBooks. Look for a system that does NOT require intermediate third-party software to facilitate the integration. The feature should be built-in. Parts catalog Quickly review an dimport current parts and prices from both aftermarket and OE sources. and import current parts and prices from both afrket and OE sources. Effective marketing and promotion capabilities Provides a method of communicating marketing messages and special promotions to customers. Networking option Even if you are installing the system on a single PC now, you may want to expand to a network environment later. Speed The faster it runs the better. Logical Flow Your program must be intuitive, yet flexible to echo the way a shop actually runs. IV. SUPPORT AND TRAINING Customer service The value of FREE ongoing support cannot be stressed enough Look for a Shop Management System that includes free training and ongoing support. Even the most basic system can be complex, and you may need help to experience all the benefits. Take the training first Any new skill requires some degree of training and practice before you are ready to try it in the real world. You may be able to jump in and just start using your new system, but a few hours in training now can help you use your software efficiently, saving a lot of time later. Even more importantly, you may miss out on some opportunities to maximize your profit potential. Important: Avoid any potential frustration. Effective training is painless and will not take as much time as you will waste by not using the system correctly

7 After you purchase a system: Follow installation instructions exactly. (Call customer service if needed.) Review the documentation. Gather all the critical information you will need to enter into your system. (e.g., Local tax rates, technician names, labor rates, etc.) Schedule training for yourself and anyone else who will use the system. Learn the system before you use it in front of customers. V. GO FOR IT! Used intelligently, shop management technology can boost your profits and make a huge difference in your daily operations. No matter how fast you can fill out a paper form, you are wasting time and money! Converting to a system for the first time or upgrading to a new one is a commitment, and it can be difficult. BUT the return for your patience will be impressive. Soon, you will not know how you survived without your system. VI. COMPARISON CHECKLIST We strongly urge you to examine Shop Management Systems according to your needs. To help you evaluate systems, we have supplied you with a checklist of the important features described in this guide. NAME OF SHOP MANAGEMENT SYSTEM: FEATURE CHECK BELOW IF THIS FEATURE IS INCLUDED I NEED THIS Estimating Flexibility Save Recommended and Declined Services Shop Jobs Maintenance Schedules Price Matrix Profit Indicator TSBs Appointment Scheduler Accounting Integration Parts Catalog Marketing and Promotion Networking Option Speed 12 13

8 NOTES: Inside Back Cover blank 14 15

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