Inventory Management Best Practices for Auto Repair Shops

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May 22, 2023

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Read time: 3 min

The answer to that question depends on a number of factors, and getting the right categorization for each part is crucial for maintaining healthy profit margins while minimizing the risk of rush orders and frustrated customers.

Inventory and Stock Management to Minimize Complexity

When you and your team are replacing parts during repairs, it’s important to consider what parts you have on hand versus what parts you’ll need to order.

If you don’t, you risk overstocking and sinking money into too many units of a particular type of part, or understocking and making a customer wait while you hope that the expedited shipping for a part pulls through.

By having the right inventory and stock management processes in place, you can make it easier for your service advisors and technicians to avoid frustrations.

Here are some best practices for inventory and stock management at your auto repair shop.

What Counts as Inventory? What Counts as Stock?

First, a quick refresher on the difference between inventory and stock.

“Inventory” includes the parts you sell to customers and the parts that your shop uses to make repairs (such as wrenches, alignment machines, and engine hoists).

On the other hand, “stock” only includes the parts you sell to customers during the usual course of repair work.

Regardless of whether a part falls under inventory or stock, it’s crucial to label every single parts transaction to reduce your risk of accounting gaps, billing inconsistencies, and more.

You can avoid these pitfalls by creating a streamlined parts management and reconciliation process.

Make Any Necessary Adjustments to Your Parts Sorting System

It might seem natural to label all your parts, even the ones you purchase multiple times per month, as inventory. However, while this process seems efficient, it introduces two problems.

First, you won’t be able to get the clearest view of your shop’s metrics. Say you buy spark plugs and sell them to your customers over 30 times a month.

If you count them as inventory, you won’t have a clear picture of just how many spark plugs you’re purchasing a month.

Second, you’ll be adding another layer of complexity to your inventory list. If you buy spark plugs, log them as inventory, then sell them to customers and put them in their vehicles, you’ll have to log all of those steps.

This can quickly lead to confusion.

If you count the spark plugs as part of stock, you’ll have a much clearer view of the metrics and will be better able to track whether or not you have enough of this oft-used, essential part.

The best way to determine when you should count a part as stock as opposed to inventory is to ask yourself these basic questions:

  • What is the business function of this part?
  • How often does my shop order this part?
  • Is this part sold to customers?
  • How often does my shop sell it?  

The answers to each of these questions will get you to your answer. For example, a tire’s business function is to be used in a customer’s vehicle (meaning, you sell it to the customer). If your shop orders a particular brand and size of tires an average of 40 times per month and sells it an average of 38 times per month, you should categorize that as stock.

Accurately Maintain and Track Stock levels

Ordering too much of a stock part can cut into your shop’s profit margin, but ordering too little of it could keep customer vehicles at your shop longer.

How much of a part to order, and how often to place those orders, depends on your shop’s unique circumstances.

For instance, let’s say you determine that your shop needs to sell customers a part only an average of ten times per month, and a few nearby auto parts stores tend to keep that part in stock.

In that case, you could adopt a “just-in-time” approach toward that part, buying it as close as possible to the time you’ll need it.

Tekmetric: A Shop Management System That Makes Managing Parts Easy

Metrics are the key to accurately maintaining and tracking your stock levels, however, tallying these numbers by hand can be time-consuming. By using a shop management system like Tekmetric, you can simplify and speed up the parts management process.

With Tekmetric, you can log parts as on-hand, in-use, ordered, and above stock or below stock.

You can also filter parts by brand, part name, part number, retail price, and primary vendor and see exactly how many units of each part you have available at your shop—and how much each unit costs to buy.

Additionally, you can directly order parts and create parts markup matrices from Tekmetric.

This article was written with the guidance of automotive repair industry CPA
Hunt Demarest of
Paar, Melis, & Associates, P.C.

👉 Ready to grow your automotive business? [Book a personalized Tekmetric Demo Here]

FAQ

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We’re excited to announce that Tekmetric, the leading cloud-based shop management system for automotive repair shops, is joining forces with Shopgenie, the leading auto repair shop CRM, to provide a comprehensive all-in-one solution that optimizes operations and drives growth for auto repair shops. This combination is set to combine the best of both worlds, offering shop owners smarter tools, seamless integrations, and enhanced features to optimize operations and drive growth—all from a single, unified platform.

So, what does it mean for our partner shops? Here’s a few of the benefits you’ll see in the coming months: 

  • Streamline your operations: Managing your shop requires balancing internal processes while delivering top-notch customer service. With the addition of Shopgenie, we’re not just expanding our platform—we’re creating a true all-in-one solution that addresses the real-world challenges you face every day. Soon, you’ll have one platform, one login, and one phone number for all customer communication, simplifying your workflow and reducing complexity.
  • Enhance Customer Engagement: Keep your customers informed and engaged with automated marketing tools, text reminders, and follow-ups. With integrated communication tools, you’ll deliver exceptional service that strengthens relationships and boosts customer loyalty.
  • Increase Efficiency & Profitability: Benefit from seamless integrations with CRM, booking, and marketing tools that reduce manual work, streamline operations, and ultimately increase profitability. Plus, you’ll continue to have the flexibility to use Tekmetric’s 70+ integrations in our robust ecosystem, with Shopgenie continuing to build and support integrations with other shop management systems.

Here’s what our leadership has to say:

“This combination sets a new standard for efficiency and customer experience in the industry. At Tekmetric, we are committed to providing shop owners with best-in-class tools to manage and grow their businesses. Similarly, Shopgenie’s ability to solve real-world challenges with intuitive technology has earned it the trust of shop owners nationwide,” said Sunil Patel, Founder and CEO of Tekmetric. “Together, we are building an all-in-one platform that empowers shop owners to attract, retain and serve customers more effectively, driving long-term growth.”

“Tekmetric’s relentless pursuit of innovation and passion for creating products that make shop owners’ lives easier could not be a more perfect fit for Shopgenie and our customers,” said Kieran O’Brien, CEO and Co-Founder of Shopgenie. “Our combined strengths will create a more complete, powerful platform that sets a new standard for auto repair software solutions.”

At Tekmetric, helping shops measure up is at the core of everything we do. With this combination, we’re building a seamless, all-in-one solution to manage every aspect of your shop more effectively. Together, we’re setting a new benchmark for the industry and aim to take your shop to the next level. Learn more at https://www.tekmetric.com/shopgenie.

Tekmetric and Shopgenie Join Forces to Revolutionize Auto Repair Shop Management

October 16, 2024

Read time: 3 min

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One multi-shop operator switched to Tekmetric and doubled monthly revenue in two years. He shared how in a recent Tekmetric and PartsTech webinar.

Auto repair shops are under more pressure than ever. Tighter margins. A technician shortage that isn't going away. Customers who expect speed, transparency, and a frictionless experience every time they walk through your door.

Yet many shops are still running on disconnected systems, manual workarounds, and processes that haven't changed in a decade. The result? Bottlenecks that bleed time, stall revenue, and cap growth — often without the shop owner even realizing it.

This is the problem a recent ShopOwner webinar, sponsored by Tekmetric, tackled head-on. The conversation centered on one deceptively simple idea: the connected shop.

In this article, you'll learn what a connected shop workflow looks like in practice, how one multi-shop operator doubled monthly revenue after switching to Tekmetric, where the most common operational bottlenecks are hiding in your estimating process, and how features like SmartJobs, parts and labor matrices, and good/better/best estimates can raise your average repair order (ARO) — the average dollar amount collected per repair order — without adding headcount.

What a Connected Shop Actually Means

A connected shop isn't just about having software. It's about having the right systems talking to each other — and having your team actually use them.

John Phelps, director of channel partnerships at Tekmetric, put it plainly: "Just because you have an oven, that doesn't make you a chef. You can have the technology, but if you're not leveraging it properly, what good is it doing?"

That distinction matters. Technology for its own sake is another bill. Technology deployed with intention — one that connects estimates, parts ordering, inspections, payments, and customer communication into a single workflow — is a growth engine.

Tekmetric is built to be exactly that. With 70-plus integrations, built-in digital vehicle inspections (DVIs — digital inspection forms that capture photos, videos, and findings shared directly with customers), real-time reporting, and a native mobile app for technicians and service advisors, it's designed so every step of the repair order (RO) flows into the next without friction, duplication, or lost data.

One Shop Owner Doubled Monthly Revenue After Switching to Tekmetric

Tim Lanier knows what a revenue ceiling feels like. As president and CEO of Lanier Auto Group — which today operates four rooftops in the northern Atlanta suburbs — he spent years running a single shop that simply could not break through a certain monthly revenue level.

"We were stuck," Lanier said during the webinar. "We had our ways of doing things. A lot of copy-paste out of catalogs into the shop management system."

In March 2020, he made the switch to Tekmetric.

"As soon as we made that change, it opened the door to a lot of new possibilities — some of which we just didn't anticipate." He added: "We probably doubled our sales in about two years once we made the switch."

At the time of switching, Lanier's single rooftop was generating roughly $200,000 per month. Two years later, that number had climbed to approximately $400,000 — a structural shift in what the business was capable of, not just an incremental gain.

What unlocked it? A connected workflow that brought parts ordering, DVIs, payments, accounting, marketing, and inventory into one platform. The glass ceiling, as Phelps framed it, became a paper ceiling. And Lanier's team broke right through it.

The Estimating Bottleneck Is Costing Your Shop More Than You Think

When Phelps asked Lanier to name the single biggest operational bottleneck he's had to overcome, the answer was immediate: the estimating process.

"If you don't come up with systems to streamline things, that person becomes the bottleneck in the shop," Lanier said. "Some tickets can take 30 minutes to an hour to find all the parts and pieces you need for big jobs."

His solution? Get technicians directly involved — and give them the tools to act on that involvement.

"We've empowered the technicians by giving them a computer at their bay and a dual monitor setup so they can go straight into Tekmetric, pull up PartsTech, use diagrams and photos to quickly identify the exact part they need, and put the part on the ticket," he explained.

The result: estimates arrive at the service advisor roughly 90% complete. Advisors clean up grammar, add photos, and present. That's it. No back-and-forth. No shouting across the shop floor.

This is the connected shop in practice. Tekmetric's integration with PartsTech means technicians can search multiple suppliers in one lookup, confirm part specifications, and add items to ROs without leaving the platform. What once took an hour can be compressed into minutes — with fewer errors and fewer return trips.

Pricing Consistency Drives ARO Growth

One of the most overlooked drivers of ARO growth isn't sales technique — it's consistency.

Phelps highlighted this during the webinar: if a customer calls back a week later asking for a brake quote and gets a number $50 different from what they were told before, trust breaks down. Inconsistency in how estimates are built — varying labor rates, different parts markups, or service advisors quoting from memory — costs shops money and customers.

Tekmetric addresses this directly. Parts matrices and labor matrices create a consistent pricing foundation so every estimate reflects the shop's actual margins, regardless of which advisor builds the ticket or when. SmartJobs — Tekmetric's proprietary canned job system that automatically pre-populates parts, labor, and job notes for common services — takes this further by ensuring the right components populate every time, on every RO.

"If you're not using SmartJobs, powered by PartsTech, in Tekmetric, reach out to support, get your SmartJobs set up, and you'll be taking a massive step forward,” Jake Benson, director of strategic accounts at PartsTech, said during the webinar.

How to Present Good, Better, Best Estimates Without Starting From Scratch

Economic uncertainty means customers are making tighter decisions. Giving them options isn't just good customer service — it's good business.

In Tekmetric, shops can build a good/better/best estimate structure without starting from scratch three times. Build the base estimate, duplicate it, add parts or labor for each tier, and text all three options to the customer. A built-in checkbox at the job level keeps declined or unchecked options out of close ratio reporting, so advisors aren't penalized for presenting choices.

The same system works for tires, fluid services, brake packages, or any job where tiered pricing makes sense. Shops that present options consistently report higher approval rates and stronger customer relationships — because customers feel informed rather than pressured.

Tekmetric Is Built to Scale With Your Shop

Lanier's growth from one rooftop to four over the last four years didn't happen by accident. He credits systems and processes — and the ability to replicate them — as the core of that expansion.

"Once you figure out your systems and processes, things begin to click," he said. "It all becomes a lot easier."

Tekmetric is built to scale with that ambition. Whether you're running a single shop or managing multiple rooftops, the platform gives ownership real-time visibility into performance across every location — ARO, technician efficiency, close ratio, and more — without requiring an extra step to pull the data.

The connected shop isn't a future state. For shops like Lanier Auto Group, it's already the standard. The question is whether yours is built the same way.

Watch the full on-demand webinar from Tekmetric and PartsTech — How to Simplify Shop Operations and Increase Your Average Repair Order — and hear directly from shop owners and industry experts on the strategies and tools driving real results in 2026. 

Almost 1,000 shop owners, service advisors, and technicians gathered in Houston for Tektonic 2026, Tekmetric's first industry conference. Over two days at the Marriott Marquis, attendees packed breakout rooms, traded hard-earned lessons, and heard from operators, coaches, and industry leaders who have built and scaled shops of their own.

The Question That Started It All

Tekmetric CEO and Founder Sunil Patel opened Tektonic 2026 with a question he has been asking since he was writing service tickets and mopping floors at his former Houston shop, Motorwerks of Houston: "Why does it have to be so hard? Why does it have to feel like we're fighting a war on 12 fronts?"

That question, he told the room, is the reason Tekmetric exists.

Standing in front of shop owners, service advisors, and technicians who understand that question on a cellular level, Patel walked through how much harder running a repair shop has become. Vehicles are packed with software, sensors, and calibration systems that require entirely new toolsets. Customer expectations have been shaped by on-demand everything. Technician shortages continue to press on shops across the country. And OEM data restrictions are making it harder for independent shops to do the work they were built to do.

But Patel didn't stop at the challenge. He laid out four pillars he believes the industry needs to move forward: stop celebrating burnout as a badge of honor, build genuine trust with customers and teams, invest in an ecosystem of great partners and vendors, and embrace technology that serves shops rather than extracts from them.

He closed with a simple ask for everyone in the room: be curious, be open, be generous with what you know, and be present. 

"I want you to take something away from here," he said. "Something that will get you to be 1% better than you were."

That set the tone for everything that followed.

Top Takeaways

Process Consistency Wins on the Hard Days

Busy days don't create problems. They expose them. The best shops build their standard operating process before the chaos starts.

  • Call the day before. A preappointment call to review service history and flag overdue maintenance turns intake from reactive to planned and primes customers to say yes before they walk in the door.
  • Speed is your biggest sales tool. Every hour between drop-off and delivering an estimate costs roughly 10% in approval rates. Get findings to customers fast.
  • Set the next promise, not the finish line. Never promise a completion time you can't guarantee. Promise the next specific update and deliver it on time, every time.
  • The in-store customer is the highest-priority repair order in the building. Every other car can wait. The person sitting in your lobby cannot.
  • Improve one thing at a time. Pick one process to fix, measure it, and build accountability before moving to the next. Trying to fix everything at once fixes nothing.

Speed Closes More Jobs Than Salesmanship

Closing rates drop sharply with every hour that passes between drop-off and the customer call. A customer who has been waiting since 8 a.m. has had time to read every one-star review and talk themselves out of approving the work.

  • Get inspection results to customers within 30 minutes of dispatch. That's the speed zone. Everything else in the shop is secondary until that call is made.
  • In-store customers get findings in 15 minutes or less. The customer is sitting right there. Use it.
  • Relative priority is your daily compass. At any moment, the most important thing is moving the car that's furthest behind in the process. Not the loudest customer. Not the most expensive ticket. The earliest step.
  • Two daily goals. Full stop. Every technician runs at least eight billable hours. The shop hits its gross profit target. Nail both and everything else follows.

You Don't Have a Technician Shortage. You Have a Culture Problem.

The technician pipeline isn't as broken as it seems. What's broken is how many shops make it hard to stay.

  • Rethink flat rate. Hybrid pay models that combine a solid base with performance incentives align your team's goals with the shop's goals and they're far more attractive to the next generation coming into the trade.
  • Answer two questions before you do anything else. Why would a technician work here? Why would a customer come back? If you hesitate on either, start there.
  • Recognition is the highest-ROI leadership move you have. Research cited at the conference found that team members become disengaged because they don't feel seen. Fix that before you invest in anything else.
  • AI won't replace hospitality. Technology can handle administrative weight, but the trust a service advisor builds with a customer at the counter is irreplaceable. Invest in that skill set.
P.J. Leslie, Tekmetric's head of mid-market and enterprise sales, moderates a panel during Tektonic 2026 in which multishop owners break down the real strategies behind expansion: buying shops, building shops, systemizing operations, integrating teams, protecting culture, and planning for eventual exit or partnership.

Growing to Multiple Locations Takes More Than Money

Every multishop operator on the stage agreed: you're never fully ready, and that's fine. What matters is being profitable, having the right people, and expecting the unexpected.

  • Profitable and cash-positive before you move. When you make a mistake at location two—and you will—you need a healthy location to cover it.
  • You're ready when your shop doesn't need you. Build your bench before you open the next door. The manager for location two should already be in your building today.
  • Start your exit plan on day one. Almost no one in the room at one of Tektonic’s breakout sessions had a clear exit strategy. Don't leave money on the table because you never thought through how the story ends—whether that means selling, transitioning, or building for long-term cash flow.

Leadership Is the Ceiling on Everything Else

Your shop will never outperform your leadership. What you tolerate becomes your standard. How you show up on Monday morning sets the emotional temperature for everyone around you.

  • Know your triggers before they know you. Name what sets you off. Once you can spot it, you can stop it before it damages a relationship.
  • Pause for three seconds. Before you respond to anything that's gotten under your skin, stop. Three seconds is the difference between a reaction and a response.
  • Hear less. Listen more. After someone finishes speaking, let the silence sit. People almost always have more to say and the second thing is usually the real thing.
  • Walk into hard conversations knowing how you want them to end. Start with the outcome in mind, not the grievance.
Tekmetric Chief Product Officer Jared Haleck breaks down Tekmetric's new products at Tektonic 2026. The new products include Tekmetric digital ads, Smart DVI, and Tekmetric phones.

Product Announcements at Tektonic 2026

The closing session belonged to the Tekmetric product team. Drawing on data from more than 15,000 shops on the platform, Tekmetric President and COO Lauren Langston and Chief Product Officer Jared Haleck built the roadmap around key areas where winning shops consistently outperform the rest: car count, average repair order (ARO), driver experience, and cycle time.

Here's a look at what’s coming:

Tekmetric Digital Ads: AI-powered advertising on Google Maps and Search, built for the moment a driver has a problem and is ready to act. It connects directly to Tekmetric so you can see the gross profit behind every dollar of ad spend, not just clicks.

Smart DVI: Technicians walk the vehicle, narrate what they see, and Smart DVI builds the customer-ready inspection report automatically—findings organized, images annotated, and jobs pre-suggested for the estimate. Less time typing. More time turning wrenches.

Tekmetric Phones: Customer details, open repair orders, and communication history surface the moment an inbound call rings. No more looking it up while someone's waiting. A future capability in development will transcribe calls in real time and auto-populate appointment notes.

See You in 2027

Tektonic 2026 was Tekmetric's first industry conference, and it delivered on the promise Sunil Patel made from the stage: a room full of shop owners, service advisors, and technicians who showed up to get better.

The through-line across every session was the same. The shops that win are the ones that build systems, invest in their people, and keep getting 1% better. Not all at once. One thing at a time.

Registration for Tektonic 2027 is already open. We hope to see you there.