If you’re curious about 2020 trends in auto recon, let’s start with the broader trends of the auto industry first. According to a study by Coherent Market Insights, the global automotive repair and maintenance services market is projected to show a CAGR (compound annual growth rate) of 5.6% from now through 2027.
What’s causing this projected growth? And what does it mean for your auto recon business?
1. Increasing disposable incomes
Disposable incomes have increased steadily over the past 25 years from less than $6,000 in 1995 to over $16,000 today according to Trading Economics. This is probably the main reason for the growth of the auto industry as a whole. The North American auto market is expected to achieve a CAGR of 7.22% from now through 2024, according to a recent study by Mordor Intelligence.
2. An increasing number of vehicles on the road
According to an article in USA Today, the number of vehicles on the road has reached over 278 million, an all-time high.
3. Increasing average age of vehicles and an increase in average miles driven per vehicle
The typical vehicle on the road today is now 11.8 years old. Average vehicles ages have increased an average of 4% over the last five years, according to research firm IHS Markit.
To put it simply, there are new cars added to the road every day, and Americans are keeping their cars much longer than they ever have before. If you are in the car maintenance and reconditioning industry, these growth trends are all good news for you and your business!
What Auto Industry Trends Mean for Auto Recon Consumers
As an auto recon business owner, you need to be aware of broad auto industry trends and how they affect consumers so you can act accordingly. When you stay on top of industry trends, your business will benefit.
How do these auto industry trends affect your potential customers?
- Car owners want to do their best to take care of their cars so that they can drive them longer.
- Many of your customers likely have the money to spend on auto maintenance and reconditioning.
- They will be looking for a service like yours to help them. Many Americans are busy and convenience is king. For car maintenance and repair, most people either don’t know how to do it themselves or don’t want to do it themselves.
Car owners are likely motivated to seek out businesses like yours to help them keep their cars in top shape.
How Your Auto Recon and Detailing Business can Capitalize on Industry Growth
Now that you know what the average American car owner is thinking, how do you put it into action for your business? Here are 4 tips:
1. Start Charging Your Real Value
Disposable incomes are rising for Americans, and annual US inflation rates range from 1-3% every year. Are you still charging the same prices for your services from when you first opened? At the very least, you should be adjusting your prices to keep up with inflation rates. Additionally, it’s likely you’ve been underpricing your services beyond just keeping up with inflation.
Consider using technology to help you come up with the right prices. Mobile Tech RX is the only app on the market that can help you create perfect estimates. Start making more money from the customers you already have. We have solutions for a wide range of auto recon including Detailing, Interior, PDR, Paint, Wheels, and more.
2. Try New Marketing Strategies to Acquire New Customers
If there are an increasing number of cars on the road, you should be thinking about ways to get them into your shop. Keeping your current customers happy is important, but it’s also important to acquire new ones. Acquiring new customers will help you sustain business growth. You will need a good marketing strategy to help you get your name out there and start attracting new customers.
If you need some ideas to help you get started, read this article about the top 3 marketing ideas for your auto recon business.
3. Optimize for Operational Efficiency
Once you’re able to increase the number of customers that come into your auto recon shop, you will need to be able to work faster and smarter to serve them all. Time is money, so optimize your business to get more customers in and out quickly without sacrificing on quality. This will help your business grow and keep your customers coming back.
An auto recon business management app like Mobile Tech RX can help you optimize your operations. Our mobile app helps you create professional estimates and invoices from your phone or tablet while you’re out working on vehicles. Some more features that help you work faster are pre-set pricing packages and matrices, VIN scanning, assigned work to technicians, and Quickbooks integration.
4. Help Consumers Keep Cars Longer
Now that you know the auto industry trends and path to growth, you can take advantage of it for your own auto recon business. When you align your company’s goals with your customers’ goals, everyone benefits. Make it your purpose to help drivers keep their cars on the road longer.
The auto and auto recon industry isn’t slowing down anytime soon. Optimize your business with Mobile Tech RX. Contact us today to learn more.