Here's a fun exercise: add up the value of all the jobs you completed last month. Now look at your bank account. Notice a gap? That gap has a name. Actually, it has several names, and they're all living rent-free in your workshop, quietly siphoning money while you're busy turning spanners.
After talking to hundreds of workshop owners across New Zealand, we've identified the five biggest money leaks that plague automotive businesses. The frustrating part? Most of these are completely invisible until someone points them out. The good news? Once you see them, they're surprisingly fixable.
Fair warning: this article might be uncomfortable. You're probably doing at least two of these things right now. Don't shoot the messenger.
1. The Work That Never Makes It Onto the Invoice
Let's start with the one that hurts the most: work you actually did, but somehow never charged for.
It happens like this. Your tech is under the bonnet doing a cam belt replacement. While they're in there, they notice the water pump is looking dodgy. Being a good mechanic, they mention it to the customer. Customer says "yeah, go ahead." Tech does the work. Job gets finished. Car goes out the door.
Three days later, someone's doing the accounts and realizes the water pump was never added to the job card. The part is gone from inventory, the labour was done, but the invoice shows only the cam belt. You just donated a water pump and an hour's labour to a customer who would have happily paid for it.
The Real Cost
A workshop doing 25 jobs per week that misses just one $150 add-on per week loses $7,800 per year. If you're missing two or three per week (which is common), you're looking at $15,000-$25,000 annually walking out the door. That's a new diagnostic machine. Or a holiday. Or, you know, profit.
The culprit is almost always the gap between the workshop floor and the invoicing process. Tech does extra work, scribbles it on a paper job card (or doesn't), card gets coffee spilled on it, and by the time it reaches whoever does the invoicing, details have gone missing.
The fix isn't complicated: close the gap. If the person doing the work can add items to the job in real-time - on a tablet, phone, or workshop terminal - there's no gap for work to fall through. The job card becomes the invoice, and nothing gets lost in translation.
2. Parts Markup That's All Over the Place
Quick quiz: what's your parts markup? If you answered with a single number ("50%"), you're probably leaving money on the table. If you answered "uh, it depends who's at the counter," you're definitely leaving money on the table.
Parts markup leakage happens when there's no consistent system for pricing. One staff member marks up 40%, another does 60%, someone gives the "good customers" a discount, and the apprentice just charges whatever the customer seems willing to pay because nobody told him the rules.
The result is chaos disguised as flexibility. You think you're making margin on parts, but your actual margin varies wildly from job to job. Worse, customers talk to each other. When Dave finds out he paid $180 for the same brake pads that cost his mate Steve $140, he's not going to think "oh, different markup strategies." He's going to think you're ripping people off.
The Problem
No consistent markup policy means some jobs are profitable and others aren't - and you have no idea which is which until you run the numbers months later (if ever).
The Fix
Set tiered markup rules in your system: 60% on small parts, 45% on mid-range, 30% on expensive components. Apply automatically. Remove the guesswork.
A proper markup matrix isn't about squeezing every dollar - it's about consistency. You can still offer discounts when it makes sense, but at least you'll know you're discounting from a consistent base price, not from whatever number someone pulled out of the air.
The workshops that nail this have their markup rules built into their software. Part comes in at $100 cost, system automatically suggests $150 sell price based on the rules you've set. Staff can override it if there's a good reason, but the default is profitable and consistent.
3. The Invisible Labour That Never Gets Billed
Time is your inventory. Unlike parts, you can't put it back on the shelf if you don't sell it. Every hour a tech is at work costs you money - wages, ACC, KiwiSaver, the electricity keeping the lights on. If that hour doesn't appear on an invoice somewhere, it's pure cost with no revenue to offset it.
Most workshops track "billable hours" but the definition gets fuzzy. Does the 20 minutes your tech spent test-driving after a brake job get billed? What about the 15 minutes diagnosing a weird noise that turned out to be nothing? The 30 minutes waiting for a customer to approve additional work?
Here's a reality check that might sting: if your techs are working 40-hour weeks but you're only billing 25-30 hours per tech, you have a time leakage problem. And it's costing you thousands per week.
The Billable Hours Reality Check
Industry benchmark for a well-run workshop is 75-85% efficiency - meaning 30-34 billable hours per 40-hour week, per technician. If you're under 70%, you're bleeding money. If you're not tracking this at all... well, that's your first problem.
Calculate yours: (Total hours billed ÷ Total hours paid) × 100
The leakage happens in predictable places:
Diagnostic time: "I'll just have a quick look" turns into an hour of troubleshooting that never gets charged because it was supposed to be quick. Solution: always book diagnostic time separately, charge a minimum, and apply it to the repair if they go ahead.
Road tests: That 15-minute test drive after every brake job adds up. 4 brake jobs a day × 15 minutes × 5 days = over 6 hours per week. Are you billing for it? Most workshops aren't.
Customer chats: Your best tech is also your friendliest, which is great until you realize they spend an hour a day chatting to customers instead of working on cars. That's 250+ hours per year not turning spanners.
You don't need to become a timesheet tyrant, but you do need visibility. If you can see where time goes, you can make informed decisions about what to bill, what to absorb, and what to eliminate.
4. Quotes That Disappear Into the Void
You spent 20 minutes inspecting a vehicle, another 15 minutes writing up a detailed quote, and sent it off to the customer. They said they'd "think about it." That was three weeks ago. The quote is sitting in your sent folder, the customer has probably forgotten about it, and that potential $800 job has evaporated.
This one is epidemic. Most workshops quote work, send it out, and then... nothing. No follow-up. No reminder. Just hope that the customer comes back.
Hope is not a sales strategy.
The numbers are painful: industry data suggests workshops convert only 40-50% of quotes into actual work. That means half your quoting effort produces zero revenue. But here's the thing - a good chunk of those unconverted quotes aren't "no," they're "not yet" or "I forgot" or "I was waiting for payday."
The Awkward Follow-Up That Pays
Workshops that follow up on quotes within 48-72 hours see conversion rates 20-30% higher than those who don't. A simple "Hey, just checking if you had any questions about that quote?" can be worth thousands in recovered revenue.
"But I don't want to seem pushy!" - Every workshop owner who's leaving money on the table
The fix is embarrassingly simple: track your quotes and follow them up. Revolutionary, I know.
What this looks like in practice:
Day 1: Quote goes out. Status: "Quoted"
Day 3: If no response, quick follow-up text or call. "Hi, just checking you got the quote - any questions?"
Day 7: Second follow-up if still no response. "The parts for your [job] are still available - want me to book you in?"
Day 14: Final follow-up or mark as declined.
Most workshop software can automate this. Quote goes out, system sends a reminder in 3 days, flags it for follow-up in 7 days. You don't have to remember - it just happens.
And here's a bonus insight: the quotes that don't convert are gold for understanding your pricing. If 90% of your brake quotes are declined but competitors are busy, your pricing might be the problem. If timing belt quotes always get approved but brake quotes don't, maybe you're underpriced on belts and overpriced on brakes. You can't analyse patterns you don't track.
5. Comeback Jobs: The Silent Profit Killer
Ah, the comeback. The customer returns with the same problem you thought you fixed, or a new problem caused by the fix, and now you're doing the work again for free while another paying job waits.
Every workshop has comebacks. The question is whether you know your comeback rate and what's causing them.
A comeback isn't just the labour you're donating the second time around. It's the bay being occupied by unpaid work instead of paid work, the parts you might need to eat the cost of, the customer's trust you need to rebuild, the stress on your tech and your relationship with them, and the other customer whose job got bumped to fit in the comeback.
Conservative estimate: a single comeback costs the average workshop $200-400 when you factor in all the knock-on effects. If you're averaging two comebacks a week, that's $20,000-40,000 per year in invisible losses.
The Comeback Reality Check
Industry benchmark for comeback rate is 2-3%. If more than 3 out of every 100 jobs come back, you have a quality or process problem. If you don't know your comeback rate, that's the first thing to fix - you can't improve what you don't measure.
Common comeback causes and fixes:
Rushing: Tech is under pressure to get jobs out, skips the test drive, misses something. Fix: build adequate time into job estimates. A 10-minute buffer is cheaper than a 2-hour comeback.
Communication gaps: Customer expected one thing, you delivered another. They thought "full service" included the transmission fluid. Fix: document what's included, get clear approval, and don't assume shared understanding.
Parts quality: Cheap aftermarket part fails within weeks. Fix: track which parts cause comebacks and adjust suppliers. The $20 you saved on a water pump isn't worth it if it fails and you're doing the job again.
Skills gaps: Certain jobs keep coming back, certain techs have higher comeback rates. Fix: identify patterns and invest in training. It's cheaper than the alternative.
The key is tracking. When a job comes back, record it. Note what went wrong and why. Over time, patterns emerge, and you can actually fix the root causes instead of just absorbing the cost and hoping it doesn't happen again.
The Common Thread: Visibility
Notice what all five of these have in common? They're invisible. Work falls through cracks you can't see. Margin varies in ways you don't notice. Time evaporates without a trace. Quotes disappear without follow-up. Comebacks happen without analysis.
The workshops that don't have these problems aren't run by geniuses. They just have visibility. They can see where money flows (and where it leaks). They have systems that surface problems before they become expensive.
Paper job cards and spreadsheets can't give you this visibility. They're too slow, too fragmented, too dependent on humans remembering to update them. By the time you know you have a problem, the money is already gone.
This isn't a pitch (okay, it's slightly a pitch) - it's just reality. The gap between workshops that grow and workshops that struggle often comes down to whether owners can see what's actually happening in their business.
Pick one of these five leaks. The one that made you most uncomfortable while reading. Fix that one first. Then move to the next. You don't have to solve everything at once. You just have to start seeing what you've been missing.
Stop the Leaks
Hoist gives you visibility into every job, every quote, every hour. Track margins in real-time, follow up quotes automatically, and see exactly where your time goes. No more money disappearing into the void.
Start Free Trial