Digital vehicle inspections software is one of the best way to show your customer exactly what's wrong with their vehicle. Instead of an old-school paper approach, Digital Vehicle Inspections (DVIS) are a core component of your shop's workflow, and let technicians quickly highlight existing and potential future issues, with evidence!
If a technician notices that the brakes are okay now but will need to be repaired in about three months, they can note that in the DVI report, or even attach a picture for the customer to see.
Even better, because digital vehicle inspection software let you send pictures and videos, track declined repairs, and even let your shop text findings directly to customers, you can help customers feel comfortable that they're making the right decision in approving that costly repair they may have otherwise put off.
With the right DIV features creating such a modern, seamless experience, you'll be the first shop they think of next time they need something fixed!
Digital Vehicle Inspection Software Features to Look For
1. Default Inspections
One of the biggest benefits of DVIs isn't just transparency, but speed and ease of use for your service managers and technicians. With default inspections, shops can set a standardized template for every vehicle inspection.
Service advisors won't have to spend as much time building repair orders, and technicians will have a default template to work off of every time.
This not only saves both your service advisors and technicians time, but it also helps to improve the accuracy of your inspection reports, which enables your shop to provide an exceptional customer experience built on a foundation of trust.
2. Attach Pictures and Videos
One of the easiest ways to help customers feel comfortable approving work is by directly showing them the problem. We all know a picture is worth a thousand words, but what about video?
Simply telling customers their ball joint is loose might leave them wondering why it matters if they can't feel the impact when driving.
But showing them the massive play between components, torn boots, and dirty globs of grease will help them understand why the repair is worth the cost.
3. Text Inspection Findings to Customers
Customers want things fast, simple, and on their phone. When they're already texting their doctor, babysitter, or coworkers, why shouldn't they be able to text their shop when they drop off their car?
With just the click of a button, your shop can text or email inspection findings and repair estimates, with a link to approve the work right there, within seconds.
That means your shop can get to work sooner, complete the repair faster, and surprise your customers with a modern, seamless experience.
4. Track Declined Jobs
Digital Vehicle Inspections aren't just better for your customers; DVIs are also better for your shop. With Declined Job History, your shop can keep track of every single declined job, anywhere from an oil change to a transmission fix.
Because you have a history of declined work, you can quickly and easily follow up with customers next time they stop by.
Or, better yet, integrate your shop system with some marketing tools and set up automatic email reminders to customers. For example, your shop can send an automated email three months after their previous visit, reminding them of the work they declined last time.
5. Create Custom Inspections
Shops should look to create custom inspection templates for any service they offer. Whether you're a repair shop doing frequent brake jobs and want an inspection template to ensure every vehicle is inspected along the same criteria.
Or, maybe as a performance shop, you frequently service a type of turbo-charged, flat-four engine that likes to blow its head gaskets. You can set up a custom inspection to use every time that model gets towed in.
Shops can then create and attach canned jobs to inspection tasks to efficiently transition from inspections to estimates to repair works with fewer clicks and less effort on your end.
6. DVI Reporting
Because Digital Vehicle Inspections help your shop keep track of all the work you did -- from the inspection process to a completed repair -- shop owners and general managers can gain in-depth knowledge of how effective their shop's operations are.
For example, you can view high-level metrics and compare Average Repair Order values and Close Ratios both with and without inspections.
Or, you can drill down even further to look at completion rate, average inspection time, average findings, and cool details like many of your inspections sent to customers were actually viewed. That way you can fine-tune your process to not only make the most money on your shop's labor, but also make sure inspections are quicker, smoother, and more useful for customers.
Sell More Repair Work with Digital Vehicle Inspections
At the end of the day, running an independent auto repair shop is so much more than just fixing cars. As a shop owner, you're responsible for every aspect of shop operations, including shop management, customer experience, marketing, sales, and so much more.
And even with a team behind you, we know there's always room to make great shops even better.
With the right digital vehicle inspection features, your shop can not only complete inspections with ease but also keep happy customers approving repair orders time and time again.
Whereas traditional methods of payment require dipping a card in the same terminal as other customers or the hand to hand exchange of cash or check, the ability to pay by text message through SMS mobile payments takes the complexity and headaches out of the payment process for owners, service writers, and guests alike.
For auto repair shops in particular, giving guests the ability to pay by text not only streamlines the guest experience but also frees up service advisors from having to do a bunch of data entry, giving them more time to help other guests.
Here’s how text-to-pay works on our Integrated Payments, Tekmerchant. As you’ll see, we’ve built in opportunities to enhance efficiency while strengthening the relationship you have with your guests at each step of the process.
Step 1: Complete the Repair Order & Send the Invoice
By connecting Tekmerchant to Tekmetric, service advisors can quickly review the invoices of completed work and simply click a button to text the invoice to the guest.
Since the invoice is automatically generated from the repair order and is easy to edit within Tekmetric, the service advisor can reduce the time they would usually spend writing invoices.
Step 2: Collect Payment
Once the invoice is sent, the guest will receive a link that takes them directly to their invoice and pay screen. From there, they can review the work that was completed and make their payment, prompting them to input their billing information.
The customer inputs their card information, including their billing address, making it a verified payment.
At this point, all the service writer has to do is make sure that the payment has been approved and that everything checks out.
Pro Tip: Enhance Guest Service with a Call or Personal Text
Because service advisors and guests both have access to a digital invoice, it gives service advisors the opportunity to add a human touch to the payment process without the guest coming into the shop.
Consider having service advisors give guests a call or send a personal text message at this part of the process.
While this may seem like an extra step, it gives service advisors a chance to check-in with the guest to ensure all approved work was completed, which is a big step towards avoiding chargebacks.
Calling the guest is also a good chance to remind them of any maintenance that may need to be taken care of in the future and any upcoming deals or events. If the guest is too busy to take a call, Integrated Payments has a Text-to-Pay feature giving them the freedom to pay when they have time.
If everything looks good on the invoice, the guest can easily pay and move on with their day. You get paid fast and the guest is able to pay at their convenience.
Step 3: Return Vehicle to Customer
Once the payment has been processed, all that’s left to do is to return the vehicle.
Pro Tip: Add a Key Drop-Box for Convenience
Some auto repair shops use a key drop-box or locker to make vehicle returns more convenient for their guests and service advisors.
Most contactless drop boxes use programmable codes, so you can put the guest’s keys in a locker, send them the code, and let them pick up their car when they’re ready.
With a key drop-box, everyone wins: service advisors don’t have to worry about staying late; shop owners don’t have to worry about paying a service writer overtime, and your guests don’t have to feel rushed to make it back to the repair shop before closing time.
Turbo-charge Your Payments Processing
The Integrated Payment text-to-pay feature makes life easy for your guests and service advisors, and can potentially save you time, money, and headaches.
Your automotive shop is the beating heart of your business. A well-designed basic auto shop layout can streamline operations and refine your business.
When you plan to refresh your auto mechanic shop, consider how to make efficient use of your available space, enhance safety, refine the look and feel of the shop, and improve customer comfort. Most of all, upgrading the technology that forms the backbone of your business is a major component of a modern auto shop.
Manage space effectively
No matter how much square footage your shop has, you can maximize your layout to house everything you need. Consider the size and shape of your space before you commit to a specific layout. Evaluate the services you currently or intend to provide so you can plan your space safely and efficiently.
Some of those considerations include:
Equipment locations: Look at your permanent installations, such as lifts and compressors as well as movable items.
Storage: Organize storage areas so parts and equipment are easily accessible and tidy, both making them easy to find and improving your shop’s appearance and parts storage.
Working areas: Set up your workbenches and counter space so technicians can perform detail work away from the vehicle.
Loading bays: Verify your loading bay areas have adequate clearance.
Waiting rooms: Design an appealing spaceso your customers have a clean, well-lit, and comfortable place to wait.
Administrative offices: Make sure your employees have all the tools they need to keep the business running efficiently.
Effective space management also plays a big part in keeping an auto shop safe.
As a shop owner, you aren't just selling a car repair; you are selling expertise, specialized equipment, and peace of mind. If your rates are too low, you’ll struggle to keep the lights on. If they’re too high without the value to back them up, customers may opt for a competitor.
In this guide, we’ll walk through exactly how to find that "sweet spot" for your labor rate so you can build a sustainable, profitable shop.
How much should a mechanic charge per hour?
Mechanic shops should charge a labor rate that is competitive in their area, covers their overhead costs (rent, utilities, employees, etc.), and allows them to maintain a healthy profit margin (40-70%) to run the shop. Whether you are an independent shop or a large dealership, your labor rate and parts markup are your primary vehicles for maintaining profitability.
Key terms to know
Before we dive into the math, we need to understand these concepts.
Loaded labor rate: is the true cost of an employee, including their hourly wage, taxes, benefits, and insurance.
Hourly labor rate pricing: is the "posted" rate—the number your customers see on the repair estimate. It is the flat dollar amount you charge per billable hour.
Flat-Rate pricing: is a system where a specific repair is assigned a predetermined amount of time (e.g., a water pump replacement is "booked" at 3.4 hours). The customer pays for 3.4 hours regardless of whether the auto mechanic finishes in two hours or five.
Effective labor rate (ELR): is the real-world number that matters. It’s calculated by taking your total labor sales and dividing them by the actual hours your technicians worked.
How to set your automotive shop labor rate (step by step)
Setting your rate shouldn't be a guessing game based on what the guy down the street is charging. It should be a data-driven decision. Here is a step-by-step approach to finding your labor rate.
Step 1: Calculate your "loaded" labor cost
First, determine exactly what it costs you to pay an employee. This isn't just their hourly wage. You should include:
Wages and overtime.
Payroll taxes.
Benefits (Health insurance, 401k).
Workers' comp and liability insurance.
Training and certifications.
Any other benefits you provide employees.
Divide this total annual cost by the number of billable hours that the employee produces in a year. This is your "loaded" cost and does not include any profit margin.
Step 2: Account for overhead
Your labor revenue needs to cover more than just the employee. It must also cover the overhead costs of running an auto repair business:
In the automotive industry, labor profit margins vary greatly, but most shops aim for 40-70%. If your loaded cost for a technician is $45 per hour and you want a 65% profit margin, your base mechanic labor rate should be at least $128 per hour.
Step 4: Benchmark against your competition
While your internal numbers should be your primary focus, you shouldn’t ignore the local market. If your labor rate is $128 per hour but every other independent shop in your town is at $100, you need to either justify your value through superior service or find ways to reduce your overhead. Make sure you benchmark against competitors of similar size, services offered, and geographically nearby.
Step 5: Implement a labor matrix
Not every repair order is the same. Many successful shops use a labor guide combined with a labor matrix that slightly increases the rate for more complex jobs or diagnostic work. Shops that perform more specialized repairs or focus on specialty vehicles should heavily consider implementing a labor matrix.
Which factors impact labor rates?
Your rate shouldn't be static. Several external and internal factors will influence how much you can—and should—charge for car repair services.
Location: A higher cost of living in cities like California or New York necessitates higher labor rates compared to rural towns. Your technicians need to earn enough to live nearby.
Shop type: A general auto repair shop usually has lower rates than a specialty Euro shop or a heavy-duty diesel facility. Specialization requires more expensive tools and higher-paid talent.
Certifications: If your team holds advanced ASE certifications or factory training, you provide more value. Customers are often willing to pay more for a repair estimate from a shop they trust to do it right the first time.
Warranty: If you offer a service warranty, you are taking on more risk and can charge more for the peace of mind.
5 Ways Tekmetric can help your shop be more profitable
Tekmetric can help you be more profitable by providing the features and reporting you need to make better business decisions. Tekmetric shops average a 65% labor profit margin by utilizing modern features that help you build trust with your customers and keep them coming back year after year.
Custom labor matrix: Tekmetric allows you to set up labor matrices that automatically adjust your mechanic labor rate. This ensures you don’t undercharge for difficult work.
Real-Time reports: Stop waiting until the end of the month to see if you made money. Tekmetric gives shop owners a real-time look at their gross profit, plus many other helpful metrics.
Measuring effective labor rate: As we discussed, your posted rate isn't always what you take home. Tekmetric tracks your ELR automatically, showing you exactly where "leaks" (like excessive discounting or slow techs) are happening.
Digital Vehicle Inspections (DVI): Higher rates are easier to justify when you can show the customer exactly why they need the work. Tekmetric’s DVIs build trust and increase customer satisfaction, making the price conversation much smoother.
Technician efficiency: By tracking technician efficiency and productivity within the platform, you can see which members of your team are hitting their goals and which employees might need more coaching.
Final thoughts
Setting your labor rate requires constant attention to your local market, your internal costs, and the evolving complexity of car repair. By following these steps, you’ll ensure that your shop doesn't just keep cars running—it keeps your business thriving. If you have questions about Tekmetric or how we can help your shop be more profitable, book your free demo today.
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