FixMyCar disrupts online booking model by scrapping commission for garages on jobs
Garages now keep 100% of their profit margins, as FixMyCar scraps variable job fees and marks six months of growth since March's management buyout.
FixMyCar has announced new subscription-only packages for the garages on its platform, replacing the traditional job fee model adopted by the industry.
The launch is the latest in a run of changes the company has made since its management buyout in March, as it puts the growth of its garage network at the centre of its strategy and focusses on investing in its network.
Garages across the UK are dealing with rising costs, tighter margins and a tough economy, while Drivers are becoming increasingly cost conscious and quotes inflated by referral fees are not helping.
FixMyCar believes the old job fee model, where garages pay a cut for every piece of work they win, no longer fits this reality. A flat, monthly subscription gives garages a cost they can plan around, keeping 100% of their profit margins, whatever the state of the wider economy.
Amanda Webb, CEO at FixMyCar said, "We're seeing that variable job fees do not work for auto repair businesses today. Their environment is already too challenging and too unpredictable to make this model sustainable. Feedback from our network was key in our decision to move FixMyCar to a new subscription model that better supports the way our garages are currently working.
More importantly, this change is part of a more central focus for FixMyCar as we transition from a transactional business to a model that forms meaningful partnerships with garages and helps them grow and develop at a pace that suits them.”
Under the new model, garages pay for one of three subscription-only packages instead of a variable fee on every job. Garages can choose from the Standard, Premium or Pro subscription-only packages, with zero job fees and prices reflecting the average value of work garages win in a month.
The new packages are designed to fit auto repair businesses of all sizes. This enables garages to choose the package that works best for them, whilst having the opportunity to upgrade as their business grows.
A network that gets more than just work
The new packages sit alongside a wider set of changes FixMyCar has made since the buyout. The company has built partnerships that add real value for garages, not just leads.
Bosch now supports the network with access to award-winning auto repair training courses. Through a partnership with One Funding, FixMyCar garages can also get access to flexible finance solutions for funding growth and investment.
FixMyCar has also invested in its own technology and service. The company recently introduced Aircall’s intelligent voice agent to its customer service team. It helps FixMyCar respond to garages and drivers faster and more consistently, freeing up the team to focus on the calls that need a human touch.
A business built for the long term
Six months on from its management buyout, FixMyCar has experienced a lot of positive changes as it transitions towards a garage partnership model. Garage numbers are growing, and the company plans to keep investing in the tools, partnerships and technology that help garages run better businesses, not just win more work.