It’s a well-known fact in the auto-repair world that summer is the busiest time of the year. As the weather heats up and families start going on road-trips, more and more drivers bring their vehicles into the shop for maintenance.
Service advisors are an integral part of running your shop.
Not only do they have to greet every customer and learn what they need, but they also need to connect a lot of moving parts, whether that means sending repair orders to guests, making sure they’re getting approved, coordinating with technicians, or literally tracking down parts for repairs. that service advisors keep a cool head.
Making sure every job makes it through the repair process without fault while providing guests with kind and diligent service can be tough, but there are tools and habits that can make the job a breeze.
Here are a few actionable tactics you can start using immediately at your shop so service advisors can stay brisk in spite of the heat.
Get to Know Your Guests & Their Vehicles
When it comes to guests, the mileage may vary. Some guests are easier to work with than others. Some will throw you the keys and approve whatever work needs to be done. Others will only approve a small amount of work and call every few minutes to check on the job.
Service advisors may not be able to directly change how guests behave, but we are able to know what to expect. Customer notes are a great way for service advisors to know the attitudes, behaviors, and preferences of each individual guest. Taking detailed notes and checking them before or during a customer interaction can make it easier to work with even with the most difficult clients.
Leverage Your Shop's Information
In addition to customer notes, some shop management solutions offer customer metrics and other tools that help service advisors know even more about their customers.
1. Use Lifetime Stats: Percent Close Ratio
Shop management systems like Tekmetric can actually show you the lifetime stats of a customer, including how much they’ve spent at your garage and the percent of repairs they close on. Knowing the guest’s percent close ratio can help you know how much time you should spend attempting to sell a customer on jobs, especially when the shop gets busy.
2. Shared Customer History
CARFAX vehicle reports can also tell you a lot about the customer. For instance, if it says that the customer brings their vehicle in every 5,000 miles, they probably care about keeping their vehicle maintained and are more likely to approve work.
Master Your Workflow
When it comes to service advising, you have to be able to flow quickly between talking to guests, assembling repair orders, authorizing repair orders, working with technicians, ordering parts, answering the phone, and receiving payments.
It’s a lot to keep track of! Leveraging a digital job-board, or shop dashboard is probably the best way for service advisors to keep track of all the responsibilities they have to juggle.
A good shop dashboard will show you the status of every vehicle in the repair order process and send alerts to technicians, parts suppliers, and even the guest when it’s their turn to take action.
Repair order sent? The guest should get an alert to approve.
Did the part arrive? The technician should be alerted so they can get to work.
If your guest is in a hurry, you may want to make a note on their job in the shop dashboard and set the right expectation.
By glancing at the dashboard and seeing that you have a number of cars being worked on, are waiting on several parts, and have more cars in the queue, you should be able to let the guest know that they’re going to have to wait at least a couple of hours.
But if things are less busy, you can leave a note so that the technicians can be mindful that the guest needs to be somewhere, especially if their notes indicate that they’re a loyal, well-paying customer.
The Secret Lies in Good Shop Management Procedures
Shop management systems are a fundamental tool for service advisors, and a good one will allow you to easily take customer notes, track the repair process, and be an excellent service advisor.
Especially this summer when there’s a pandemic, a shop management system with text and email repair order approval and text-to-pay options will make offering curbside service simple and easy.
Make sure that you have the tools to get the job done, and have trained your service advisors before the heat kicks in.
Every vehicle that rolls into your shop is an opportunity to protect a customer's family, uncover real problems before they become roadside emergencies, and build the kind of trust that earns repeat business—but only if your team catches what matters every time.
A consistent inspection process is how shops do that. And when you pair it with the right tools, it pays off: Tekmetric shops using Digital Vehicle Inspections (DVIs) average $741 per repair order, compared to $612 without them.
Below, you'll find a downloadable 100-point vehicle inspection checklist, a breakdown of what every technician should check, and an overview of how digital vehicle inspections can sharpen your workflow.
Paper inspection checklists worked for decades, but they come with real costs: illegible handwriting, lost sheets, no documentation, and frustrating back-and-forth among the technician, service advisor, and customer.
Digital Vehicle Inspections change that. With Tekmetric, your technicians perform the inspection on a tablet or phone, attach photos and videos of anything that needs attention, and send a vehicle health report straight to the customer's phone.
Here's what that looks like in practice: A technician notices worn brake pads on a 2019 Toyota Highlander. Instead of writing a note the customer may not understand, the technician snaps a photo of the worn pad next to a new one, records a short video, and marks the task red for immediate attention. The service advisor builds the estimate and texts it to the customer. Whether they're an in-store customer in the waiting room or at work across town, the customer approves the job with a digital signature.
Why car inspections matter
Every car owner is counting on your team to catch what they can't see. A consistent inspection process gives your technicians a repeatable way to do exactly that on every repair order, every time.
Inspections also drive revenue. When you document a vehicle's condition clearly with photos and notes, customers understand exactly what their car needs and why. They approve more of the work they genuinely need when they can see the evidence.
Tired of piles of paper inspections? Upgrade your shop with digital vehicle inspections. Send inspection findings to the customer for approval with the visual proof needed to close the deal.
100-Point vehicle inspection checklist
A full inspection covers every system that affects safety, drivability, and reliability. The comprehensive 100-point checklist below gives your technicians a strong baseline they can follow on every repair order.
Vehicle intake
Log the VIN and license plate to confirm the vehicle's identity and match past service records.
Record odometer reading in and out.
Note customer-reported concerns and the reason for the visit.
Document the fuel level at drop-off.
Check for open safety recalls tied to the VIN.
Gather customer contact information.
Exterior condition
Check the body for dents, scratches, and any signs of damage.
Inspect the bumpers front and rear for cracks, loose mounts, or impact marks.
Confirm the license plate is secure, legible, and properly mounted.
Note any rust, paint issues, or trim damage.
Inspect fenders, rocker panels, and body panel alignment.
Inspect glass, windshield, and mirrors for chips, cracks, or pitting.
Check door handles, hinges, and weather stripping.
Inspect child safety locks.
Inspect the trailer hitch.
Lights and electrical
Headlights on low and high beam.
Taillights and brake lights.
Turn signals front and rear.
Hazard flashers.
License plate lights and dashboard illumination.
Reverse lights, fog lights, and daytime running lights.
Interior dome, map, and courtesy lights.
Any warning light that's illuminated on the dashboard. A check engine light, ABS warning, or airbag indicator tells you where to focus diagnostic time.
Battery voltage, terminals, and charge/discharge load test.
Alternator output and starter draw.
Ignition switch and accelerator pedal function.
Horn operation.
Tires and wheels
Check tire pressure on all four tires plus the spare.
Measure tire tread depth.
Check for uneven wear patterns that can point to alignment or suspension issues.
Inspect sidewalls for cracks, bulges, or embedded objects.
Check valve stems and caps for leaks or damage.
Review the tire DOT date code for age.
Verify wheel condition, lug nut torque, and hub cap security.
Check the spare tire, jack, lug wrench, and locking wheel lock key.
Confirm the tire pressure monitoring system (TPMS) is functioning.
Brake system
Check brake pads for thickness and wear patterns.
Inspect rotors for scoring, warping, or excessive wear.
Examine brake drums and shoes, if equipped.
Check brake calipers for sticking, leaks, or damaged boots.
Check brake fluid level and condition at the master cylinder.
Examine brake lines and hoses for cracks or leaks.
Test parking brake function and adjustment.
Evaluate overall brake pedal feel, travel, and pulsation.
Verify ABS sensors, wiring, and warning light operation.
Steering and suspension
Inspect the steering wheel for play and responsiveness.
Check steering column and intermediate shaft for looseness.
Check power steering fluid level and condition.
Examine tie rods and ball joints for wear.
Check struts for leaks or damage.
Inspect shock absorbers for proper dampening and leaks.
Check CV boots and axle shafts.
Inspect wheel bearings for noise or excessive play.
Inspect sway bar links, bushings, and control arms.
Look for uneven ride height or sagging that can indicate a failing spring.
Under the hood
Check the battery capacity.
Check engine oil level and condition.
Check the oil filter for leaks and proper seating.
Inspect transmission fluid.
Check coolant level, condition, and the cooling system for leaks.
Inspect brake fluid, power steering fluid, and washer fluid reservoirs.
Inspect the battery, cables, and hold-down hardware.
Examine the serpentine belt and any drive belts for cracks, glazing, or fraying.
Check all hoses for soft spots, swelling, bulges, or leaks.
Inspect the engine air filter and cabin air filter.
Check the fuel filter, if serviceable.
Inspect the PCV valve and evaporative emissions components.
Check the radiator and condenser fins for debris or damage.
Check engine and transmission mounts.
Look for oil leaks at the valve cover, oil pan, and gaskets.
Test the spark plugs and ignition components.
Inspect air intake.
Inspect fuses.
Under the car
Check the exhaust system for leaks, rust, and damaged hangers.
Inspect the muffler, resonator, and heat shields.
Inspect fuel system components, lines, and the fuel tank for leaks or corrosion.
Look at the transmission and differential housings for leaks.
Check the oil pan and drain plug for seepage or stripped threads.
Examine the frame, subframe, and undercarriage for rust or impact damage.
Check emissions-related components like the catalytic converter and oxygen sensors.
Inspect the driveshaft, U-joints, and center support bearings.
Verify skid plates and underbody shielding are secure.
Scan the ground under the vehicle for any fluid drips or leaks.
Interior and safety equipment
Test seat belts for retraction, fraying, and buckle function.
Confirm airbag and supplemental restraint indicators clear properly.
Inspect windshield wipers and wiper blades for streaking or splitting.
Test washer fluid spray on the windshield and rear glass, if equipped.
Inspect interior warning lights.
Check AC, heat, and all fan speeds.
Test front and rear defrosters.
Inspect infotainment displays and systems.
Test door locks, power windows, and the key fob.
Inspect driver-assist systems, backup camera, and parking sensors.
Inspect lane departure systems.
Road test
Confirm smooth engine start and stable idle.
Evaluate transmission shift quality and clutch engagement, if manual.
Test braking response, pedal feel, and stopping distance.
Listen and feel for suspension noise, vibration, or harshness.
Check cruise control and driver-assist system operation.
Note any dashboard warning indicator, abnormal smoke from the exhaust, or unusual vibration that appears during the drive.
Build customer trust with digital vehicle inspections
A great inspection process isn't about checking boxes. It's about giving every vehicle owner a clear, honest picture of their car's condition so they can make informed decisions about their safety and their budget. When your shop pairs a thorough inspection process with a digital tool like Tekmetric's DVI, you give your team the speed and consistency they need and your customers the transparency they want.
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.
Shop Management
Thought Leadership
Setting Your Automotive Repair Labor Rate (5-Step Guide)
Today, online reputation management is a key tactic top shops use to attract more customers. Online presence is often the first—and sometimes only—impression a customer has of your business. This guide will dive deep into why automotive reputation management is no longer optional, how it impacts your SEO search rankings, and the specific strategies you can use to attract more 5-star reviews.
The importance of online reviews for auto repair shops
Why do online reviews matter so much in the auto repair world? The answer is that most customers check online reviews from Google and other search engines as part of their decision-making process. In addition, online reviews impact your SEO rankings and can help you differentiate your shop from the competition. Here are some other top reasons to keep track of your reviews:
Build trust
High-quality testimonials help build trust before the customer even sets foot in your lobby. Research consistently shows that the majority of customers read online reviews before feeling they can trust a local business. For auto repair shops, positive reviews act as social proof that your shop provides quality services.
Local SEO
When a prospect searches for "oil change near me", the results they see are heavily influenced by SEO strategies. Google prioritizes businesses with a high volume of new reviews, high star ratings, and a complete, active profile. If your competitors have 200 reviews and a 4.8-star average, while you have 120 3-star reviews from 2019, Google will rank your competiton higher. Review management directly impacts your rankings, rankings impact your visibility, and visibility impacts how many customers show up to your shop.
Beating the competition
Go ahead and Google your competition. How many reviews do they have? Do they average 2-star or 5-star reviews? By focusing on auto repair reputation management, you can position your shop as the best in your area. New customers are often hesitant to try a new shop; seeing a consistent stream of positive feedback from satisfied customers lowers that risk and encourages them to stop by.
Another way to move past your competition is to leverage Google Ads. Search ads can help you boost your visibility in more competitive markets and keep your business top of mind.
Best practices for managing your shop's online reputation
Successful auto repair reputation management is a continuous project. Top performing shops have software and employees dedicated to monitoring online reviews. To stay ahead, shops need to follow best practices to maximize their online visibility.
Claim and optimize your profiles
Claim your listings in Google Business, Yelp, and Facebook. Once claimed, you can optimize your profiles by making sure your business name, address, and phone number are consistent across the web. Upload high-resolution photos of your shop, your front-desk staff, and your comfortable waiting area. A professional-looking profile sets the stage for a 5-star experience.
Use the right tools
Many shop owners utilize reputation management software to aggregate reviews into a single dashboard. This allows you to ask for reviews and respond to them in the same platform.
Tek-Tip: Overwhelmed? Tekmetric offers auto repair reputation management software that makes it easier to attract new reviews and respond to exisiting review in one platform.
Diversify your review sources
While Google reviews are often the focus of local SEO, don't ignore other platforms. Some customers prefer Yelp, while others might find you through social media. Directing a small percentage of your review requests to different platforms ensures a well-rounded online presence.
Make it a team effort
Your service advisors are the faces of your automotive brand. Train your staff on the importance of the customer experience. If your technician or service advisor is mentioned in a 5-star review, encourage that behavior by rewarding them accordingly. Make it a competition to see who can earn the most 5-star reviews in a month.
Quality control
Use customer feedback internally to improve your operations. If you notice a trend in negative feedback regarding long wait times, don't just ignore it. Use those insights to refine your workflows and teach employees.
How to respond to customer reviews
Responding to online reviews is perhaps the most critical part of review monitoring. It shows potential customers that you are attentive and care about your customers.
Responding to positive reviews
Don't just "like" a 5-star review. Take a moment to write a personalized response.
Acknowledge them by name: "Hi Sarah, thank you for the kind words!"
Highlight a specific service: "We’re glad we could get that oil change done quickly for you."
Invite them back: "We look forward to seeing you at your next service!"
These responses reinforce customer trust and encourage them to come back to your shop for service in the future.
Handling negative reviews
Negative reviews are inevitable in the any business. Parts fail, delays happen, and sometimes there are misunderstandings about pricing. The key is how you handle the negative feedback.
Stay professional: Never get defensive or angry. Remember, your response is for the future customers reading the review, not just the upset one.
Acknowledge and apologize: "We’re sorry to hear that your experience didn't meet our standards."
Move it offline: Provide a name and a phone number for them to contact directly. "We would like to make this right. Please call our manager, Jim, at [Number]."
Keep it brief: Don't get into a "he-said, she-said" battle on public forums.
Tekmetric offers a feature called private feedback where you can engage with upset customers before it goes public.
Benefits of responding
Regularly responding to reviews tells search engines and prospects that your business is active. This can provide a slight boost to your search rankings. In addition, if you successfully resolve a customer's issue mentioned in a negative review, you can ask them to go back and edit their star ratings or delete the negative feedback entirely.
How to attract more 5-Star reviews for your automotive business
Reviews can come in naturally but customers often need to be prompted to leave a review. While unhappy customers are often highly motivated to vent, satisfied customers frequently forget to share their experiences. The best performing shops have an automated way to ask for, collect, and respond to reviews.
Ask consistently
The simplest way to get more positive reviews is to ask for them. However, timing is everything. The best time to ask for a review is within 24 hours of service before customers move on and forget. A simple, "We're so glad we could get you back on the road! If you're happy with the service, would you mind leaving us a quick review?" goes a long way. Make it easy for the customer by providing a Google review button or link with your completed invoices.
Don’t forget that physical signage can be effective as well. Add a QR code or sign in your lobby asking for customers to leave a 5-star review which will enter them into a drawing for a free oil change.
Leverage SMS and automation
In the automotive industry, convenience is king. Using SMS for review requests has a significantly higher open rate than email. By integrating automation with your Shop Management System (SMS), you can trigger a text message to be sent automatically after a work order is closed. This message should include a direct link to your Google or Yelp profile, making the review process frictionless for the user.
Go the extra mile
One of the best ways to earn a 5-star automotive review is through transparency. Digital Vehicle Inspections (DVIs) allow you to send photos and videos of the needed repairs directly to the customer's phone. When a customer sees the worn-out brake pad, they feel more confident in the repair services. This transparency naturally leads to higher customer satisfaction and better reviews.
Final thoughts
Reputation management creates a natural cycle where great service leads to positive reviews, which improves your local SEO, which attracts new customers, who then leave more reviews. If managing all of this feels overwhelming, Tekmetric can help with online review management software specifically tailored for the automotive industry.
By implementing a clear reputation management strategy, utilizing automation for review collection, and staying active on social media and review sites, you ensure that your auto shop remains the top choice in your community. Remember, every satisfied customer is a potential spokesperson for your brand.
Thought Leadership
Shop Management
Auto Repair Reputation Management: The 5-Star Guide
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