How much should an auto repair shop spend on marketing?
Someone told you 5% of sales. You're not sure if that's too much or too little. Here's how it played out at our sample shop, the way a mechanic works a car: concern, cause, correction, verification.
Nate didn't know if $2,400 a month on marketing was smart or a waste.
Worked out from your own repair orders.
2
The cause
Nolavi worked out what a new customer is worth to his shop: about $1,140 over two years, from his own repair orders. Each new customer was costing him $63.
More budget only where it pays back.
3
The correction
With that math, we raised the budget on the two sources that were paying back best, and capped the rest.
4
The verification
Marketing went to $2,900 a month and new customer sales went up $6,800 a month. The Monday report shows the payback every week.
Checked every Monday.
Example shop. Nate's Auto Repair is Nolavi's sample shop with made up numbers. The steps are exactly how Nolavi works on a real shop's data.
Questions
Quick answers.
What percent of sales should a repair shop spend on marketing?
Many shops land between 3% and 7%, but the right answer is whatever your numbers show pays back. Start with what a customer is worth to you.
What is a customer worth to a repair shop?
Add up what a typical customer spends with you over two or three years, then subtract parts and labor. That's what you can afford to pay to get one.
Open the demo and find this kind of problem yourself in a minute. Or book your 14 day free trial: it starts with a quick call, and we set it all up and fit it to your shop.