How Automotive Shop Programs Create Great Customer Experiences

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May 22, 2023

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Read time: 3 min

When customers walk into your auto repair shop, they’re trusting you and your team with the health of their vehicle, one of their most expensive assets.

They’re coming in with a problem or set of problems and expect your team to effectively fix those problems in a reasonable time frame.

And modern expectations for customer service have shifted as our technology has evolved. Customers don't want to have to find time for a phone call when they can just get texted updates about their repairs, and digital tools make it easier for shops to build transparency in their process.

Modern auto repair shop software not only makes it easy but lays the foundation for a modern customer experience at every step.

Offering a Modern Auto Repair Shop Customer Experience Starts with a Modern Shop Management System

We're big advocates of modernizing your auto repair shop, and we don't necessarily mean replacing all your racks, updating all your compressors, and swapping out your alignment rack. Sure those might help, but we get those can be really big investments.

That's why we're focused on the behind-the-scenes operations of your shop, the overall management and flow of repair orders. Modern shop management software enables owners, managers, service advisors, and technicians to gain visibility into, and control over, their individual part of the process with specific functions:

  • Cloud-based shop management
  • Real-time control
  • Digital Vehicle Inspections
  • Built-In Payment Processing
  • Digital Shop Communications
  • Efficient Parts and Inventory Management

While all of these directly work to modernize your shop operations, they also work to modernize your shop experience for customers.

When your shop is using Digital Vehicle Inspections instead of paper printouts, you're not only making it easier for your technicians and service advisors to communicate and collaborate, but you're also modernizing how your shop interacts with customers, by emailing or texting results and approval requests.

How Automotive Shop Programs Give Customers More Agency

The common way shops get repair authorizations from customers is verbally, either in person or over the phone. But this approach is rife with the risk of misunderstandings.

By contrast, digital vehicle inspections give you a way to transparently show your customers what’s going on with their vehicles, as well as a way for them to clearly indicate how they want to proceed. 

Technicians can concisely break down findings, send photos and videos of issues, and indicate the severity of each issue using a color-coded system. Service advisors can then quickly put together estimates that clearly display those findings, and email or text them to customers. 

Customers will then receive their estimates and clearly see which issues are the most pressing, as well as the expected costs. With digital authorization, customers can check off the repair work they want, and your team can start tackling repairs.

How Automotive Shop Programs Help Your Team Move Jobs Along Faster

With automotive shop programs, service advisors can get a high-level overview of every repair order at your shop. They can see which repair orders are pending authorization, in progress, or completed. Your team can even see more specific details at a glance, like which repair orders still need parts ordered, so they can swiftly move repairs along.

Service advisors can also see exactly what each technician has on their plate, so they can then assign the outstanding repair orders to the technicians that have the most availability, evening out workloads at your shop. Service advisors can dispatch specific jobs in one repair order to different technicians to avoid lopsided workloads.

As for technicians, they can use the system as their digital to-do list; they can glance at it and know exactly what they’re responsible for each day—and in which order they should tackle repairs. 

How Automotive Shop Programs Help You Keep Customers in the Loop 

Using automotive shop programs, service advisors get a snapshot of how far along every repair order is so they can communicate updates to customers without ever having to leave their workstations and interrupt technicians’ workflow. 

As each technician works and marks labor lines as complete within their own work area in the system, service advisors will see the corresponding updates and be able to tell customers exactly where their repairs stand. 

How Automotive Shop Programs Simplify How Your Customers Get In Touch With Your Shop 

An automotive shop program with true two-way texting simplifies communication for you and your team. And adding your shop’s phone number to the system opens a new channel of streamlined communication.

Service advisors can message any customer directly from the system, the message will show up as a regular text message on the customer’s phone, and they can text right back. Back at the shop, every service advisor with access to the system will see their response within the system. 

With true two-way texting, your team and your customers will be able to avoid the pitfalls of verbal communication and exchange information with more clarity.

Plus, with true two-way texting, there will be a record of the information exchanged between your shop and the customer, enabling you to safeguard your shop. 

How Automotive Shop Programs Make It Easier for You to Get Paid 

An automotive shop program with a text-to-pay feature benefits all customers, especially those on the go. Service advisors can send customers a payment link right to their smartphones when it's time to pay, and customers can then quickly punch in their credit numbers and authorize payments on a secure platform. 

In turn, service advisors will have an easier time collecting payment and will be able to keep track of which customers have paid, and which customers haven’t. 

How Automotive Shop Programs Make It Easier to Give Back

You can benefit from a referral program where you give back to your customers. Of course, if you do decide to give out discounts, you want to make sure that they don’t negatively cut into your bottom line.

An automotive shop program with real-time reports will enable your team to use discounts strategically. Giving back can also be as simple as handing a customer their favorite soda to sip on while they wait out their repair. 

Facilitate Delivering the Best Auto Repair Customer Service Possible With Tekmetric 

Tekmetric’s various features, including DVIs, the Job Board, and the Tech Board, help you streamline your team’s ability to provide exceptional customer service that gets people back behind the wheel quickly, and has them telling their friends and family about your shop.

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

FAQ

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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.

Printable vehicle inspection checklist (PDF)

Free Download: Download our comprehensive vehicle inspection checklist (PDF) to use in your shop.

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

  1. Log the VIN and license plate to confirm the vehicle's identity and match past service records.
  2. Record odometer reading in and out.
  3. Note customer-reported concerns and the reason for the visit.
  4. Document the fuel level at drop-off.
  5. Check for open safety recalls tied to the VIN.
  6. Gather customer contact information.

Exterior condition

  1. Check the body for dents, scratches, and any signs of damage.
  2. Inspect the bumpers front and rear for cracks, loose mounts, or impact marks.
  3. Confirm the license plate is secure, legible, and properly mounted.
  4. Note any rust, paint issues, or trim damage.
  5. Inspect fenders, rocker panels, and body panel alignment.
  6. Inspect glass, windshield, and mirrors for chips, cracks, or pitting.
  7. Check door handles, hinges, and weather stripping.
  8. Inspect child safety locks.
  9. Inspect the trailer hitch.

Lights and electrical

  1. Headlights on low and high beam.
  2. Taillights and brake lights.
  3. Turn signals front and rear.
  4. Hazard flashers.
  5. License plate lights and dashboard illumination.
  6. Reverse lights, fog lights, and daytime running lights.
  7. Interior dome, map, and courtesy lights.
  8. 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.
  9. Battery voltage, terminals, and charge/discharge load test.
  10. Alternator output and starter draw.
  11. Ignition switch and accelerator pedal function.
  12. Horn operation.

Tires and wheels

  1. Check tire pressure on all four tires plus the spare.
  2. Measure tire tread depth.
  3. Check for uneven wear patterns that can point to alignment or suspension issues.
  4. Inspect sidewalls for cracks, bulges, or embedded objects.
  5. Check valve stems and caps for leaks or damage.
  6. Review the tire DOT date code for age.
  7. Verify wheel condition, lug nut torque, and hub cap security.
  8. Check the spare tire, jack, lug wrench, and locking wheel lock key.
  9. Confirm the tire pressure monitoring system (TPMS) is functioning.

Brake system

  1. Check brake pads for thickness and wear patterns.
  2. Inspect rotors for scoring, warping, or excessive wear.
  3. Examine brake drums and shoes, if equipped.
  4. Check brake calipers for sticking, leaks, or damaged boots.
  5. Check brake fluid level and condition at the master cylinder.
  6. Examine brake lines and hoses for cracks or leaks.
  7. Test parking brake function and adjustment.
  8. Evaluate overall brake pedal feel, travel, and pulsation.
  9. Verify ABS sensors, wiring, and warning light operation.

Steering and suspension

  1. Inspect the steering wheel for play and responsiveness.
  2. Check steering column and intermediate shaft for looseness.
  3. Check power steering fluid level and condition.
  4. Examine tie rods and ball joints for wear.
  5. Check struts for leaks or damage.
  6. Inspect shock absorbers for proper dampening and leaks.
  7. Check CV boots and axle shafts.
  8. Inspect wheel bearings for noise or excessive play.
  9. Inspect sway bar links, bushings, and control arms.
  10. Look for uneven ride height or sagging that can indicate a failing spring.

Under the hood

  1. Check the battery capacity.
  1. Check engine oil level and condition.
  2. Check the oil filter for leaks and proper seating.
  3. Inspect transmission fluid.
  4. Check coolant level, condition, and the cooling system for leaks.
  5. Inspect brake fluid, power steering fluid, and washer fluid reservoirs.
  6. Inspect the battery, cables, and hold-down hardware.
  7. Examine the serpentine belt and any drive belts for cracks, glazing, or fraying.
  8. Check all hoses for soft spots, swelling, bulges, or leaks.
  9. Inspect the engine air filter and cabin air filter.
  10. Check the fuel filter, if serviceable.
  11. Inspect the PCV valve and evaporative emissions components.
  12. Check the radiator and condenser fins for debris or damage.
  13. Check engine and transmission mounts.
  14. Look for oil leaks at the valve cover, oil pan, and gaskets.
  15. Test the spark plugs and ignition components.
  16. Inspect air intake.
  17. Inspect fuses.

Under the car

  1. Check the exhaust system for leaks, rust, and damaged hangers.
  2. Inspect the muffler, resonator, and heat shields.
  3. Inspect fuel system components, lines, and the fuel tank for leaks or corrosion.
  4. Look at the transmission and differential housings for leaks.
  5. Check the oil pan and drain plug for seepage or stripped threads.
  6. Examine the frame, subframe, and undercarriage for rust or impact damage.
  7. Check emissions-related components like the catalytic converter and oxygen sensors.
  8. Inspect the driveshaft, U-joints, and center support bearings.
  9. Verify skid plates and underbody shielding are secure.
  10. Scan the ground under the vehicle for any fluid drips or leaks.

Interior and safety equipment

  1. Test seat belts for retraction, fraying, and buckle function.
  2. Confirm airbag and supplemental restraint indicators clear properly.
  3. Inspect windshield wipers and wiper blades for streaking or splitting.
  4. Test washer fluid spray on the windshield and rear glass, if equipped.
  5. Inspect interior warning lights.
  6. Check AC, heat, and all fan speeds.
  7. Test front and rear defrosters.
  8. Inspect infotainment displays and systems.
  9. Test door locks, power windows, and the key fob.
  10. Inspect driver-assist systems, backup camera, and parking sensors.
  11. Inspect lane departure systems.

Road test

  1. Confirm smooth engine start and stable idle.
  2. Evaluate transmission shift quality and clutch engagement, if manual.
  3. Test braking response, pedal feel, and stopping distance.
  4. Listen and feel for suspension noise, vibration, or harshness.
  5. Check cruise control and driver-assist system operation.
  6. Note any dashboard warning indicator, abnormal smoke from the exhaust, or unusual vibration that appears during the drive.

What are digital vehicle inspections (DVIs)?

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.

Tired of piles of paper inspections? Upgrade your shop with digital vehicle inspections. Send inspections to the customer for approval with the visual proof needed to close the deal.

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.

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.

Your next inspection starts with the right checklist. Download the free 100-point vehicle inspection checklist or upgrade to digital vehicle inspections.

Comprehensive Vehicle Inspection Checklist (Printable PDF)

April 22, 2026

Read time: 3 min

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At Tektonic 2026, one of the most memorable moments of the conference came when Tekmetric turned the spotlight on the shops doing the best work.

The inaugural Shop Excellence Awards, powered by performance insights from the Tekmetric platform, celebrated repair shops that are not only delivering standout business results, but also redefining what exceptional customer service, shop culture, and operational excellence look like across the automotive repair industry.

"Tonight is probably going to be my favorite part of all of Tektonic," Tekmetric CEO and Founder Sunil Patel said during the ceremony. "None of this is about us. It's about the shops in this room, the people actually doing the work. Running shops, leading teams, taking care of customers every single day."

Using 12 months of platform performance data from Tektonic event registrants, Tekmetric recognized shops that rose to the top across key measures of customer trust, service consistency, team culture, transparency, and operational growth.

"The shops that win today aren't just fixing cars … they're building businesses, leading teams, and delivering experiences customers remember," Tekmetric President & COO Lauren Langston said.

Top Car Count Award: Dick's Point S Tire & Auto Repair

The Top Car Count Award recognizes a shop that has earned extraordinary trust from its community at scale.

This year's winner, Dick's Point S Tire & Auto Repair in Battle Ground, Wash., served more than 25,000 vehicles during the last 12 months.

That level of throughput only happens when customers return again and again, and when shop teams consistently deliver an experience drivers trust.

"Serving nearly 26,500 vehicles in a single year means thousands of drivers who found a shop they could count on, returned when they needed help, and left satisfied," Langston said.

Sustained Growth Award: Branch Automotive and AutoPro Maryville

Growth is one thing. Sustaining it is something else entirely.

The Sustained Growth Award recognizes shops that have continuously raised the bar for what they deliver to every customer who walks through the door. Growth in average repair order reflects shops that are doing better inspections, making clearer recommendations, and earning customer confidence in the work their vehicles actually need. These two shops demonstrated the most consistent upward trajectory throughout 2025.

This year's winners were Branch Automotive in Highlands Ranch, Colo., and AutoPro Maryville in Maryville, Tenn.

Branch Automotive posted nine straight month-over-month increases in ARO. AutoPro Maryville also delivered nine month-over-month increases, growing by an impressive 51%.

Together, the two shops exemplify what sustainable growth looks like: stronger inspections, clearer recommendations, and the kind of customer trust that leads to consistently higher-value work.

DVI Powerhouse Award: Craftsman Auto Care – Fairfax

Matt Curry, president and CEO of Craftsman Auto Care, stands with Tekmetric CEO and Founder Sunil Patel and Tekmetric President & COO Lauren Langston at the Shop Excellence Awards during Tektonic 2026, presented by Tekmetric.

Transparency remains one of the most powerful drivers of trust in modern auto repair, and no shop demonstrated that better than Craftsman Auto Care – Fairfax.

“Winning means everything. It means my team winning–being able to pay the best in the business, being able to offer the best benefits, having amazing employees and amazing customers who just fall in love with us,” said Matt Curry, president and CEO of Craftsman Auto Care.

With almost 10,000 five-star reviews, with an average rating of 4.9 stars, Curry said that's a huge trust signal with all of their customers. Craftsman Auto Care uploaded hundreds of thousands of digital inspection images during a year, the highest total Tekmetric’s dataset.

"That's 300,000 moments where a customer could clearly see what their vehicle needed," Langston said. "Removing guesswork, building confidence, and helping drivers make informed decisions about their car."

The result is a service experience rooted in clarity, education, and trust.

Booked Solid Award: A Master Mechanic and Demore's Automotive

The Booked Solid Award honors shops that have built reliable, predictable demand through reputation and service, the kind customers actively seek out, return to, and refer others to.

This year's first winner, A Master Mechanic in Sparks, Nev., recorded the largest booked appointments in the Tekmetric network dataset.

This year's second winner, Demore's Automotive in Palmer, Mass., earned its recognition by proving that smart marketing and exceptional service are a powerful combination. As a Tekmetric Digital Ads beta participant, the shop turned digital visibility into real volume, reaching the right drivers at the right moment and converting first visits into long-term customer relationships. The result is full bays, steady demand, and a shop that delivers every time someone walks through the door.

Together, these two shops show that full schedules don't happen by accident. They're the result of consistent service, earned trust, and, increasingly, the strategic use of digital tools to reach customers before the competition does.

Financing Excellence Award: The Garagisti Katy

For many drivers, the biggest obstacle to safe, reliable transportation is not understanding the repair, it is figuring out how to pay for it.

The Financing Excellence Award recognizes the shop that best removed that barrier.

This year's winner, The Garagisti Katy in Katy, Texas, was the leading user of Buy Now, Pay Later financing across the Tekmetric network.

“I feel great, not only for myself, but for the team and everything that they do: the customer interactions, the sales, helping close the sale. It means a lot,” said Eddie Marlow, manager of The Garagisti Katy. “I have a great team, a great owner, and this award means a lot to all of us.”

By making financing a seamless part of the customer journey, the shop helped more drivers move forward with necessary repairs without added financial stress.

"This shop has made that moment easier," Patel said, referencing the often difficult conversations shops have when customers need repairs but hesitate because of cost.

Best Shop to Work For: The Kar Shop and Ice Cold Air

Ashley Butler, owner and franchisor of Ice Cold Air, stands with her team, wife, Tekmetric CEO and Founder Sunil Patel, and Tekmetric President & COO Lauren Langston at the Shop Excellence Awards during Tektonic 2026, presented by Tekmetric.

The final award of the evening focused on the people behind every customer experience.

The Best Shop to Work For Award recognized two shops this year, each demonstrating, in their own way, that the customer experience will never exceed the employee experience.

The first winner, The Kar Shop in Rogers, Ark., was recognized for building a culture where technicians and staff feel valued, supported, and empowered to grow. During the ceremony, Tekmetric leaders shared one story that stood out: the shop changed its operating hours so employees could spend more time with their families while continuing to invest in training and long-term career development.

“It's really kind of impressive that our guys think so much of us. In your day to day, you don't really think about things like that,” said Keith Kingston, one of The Kar Shop’s owners. “You're there to make sure the customers get taken care of, that everything flows well, that you have all your parts; there are so many small details you have to worry about. You don't always stop to think about how everybody feels. So to know that they said good things about us, it's really kind of humbling.”

The second winner, Ice Cold Air, earned its recognition through intentional hiring, steady processes, and genuine leadership, building a workplace where people feel supported, valued, and proud to belong. 

“And what just happened right there with my team and my wife? That energy is going to go back home with us,” Ashley Butler, owner and franchisor of Ice Cold Air, said immediately after winning the award. “It's going to go throughout the entire organization. And next year, we're coming back with a minimum of two people from each shop, that means 28 people. We're going to bring techs, we're going to bring managers, we're going to bring franchisees, so they can come build that energy and experience Tekmetric firsthand.”

With more than 100 employees, Ice Cold Air’s impact reaches far beyond the shop floor. The Tampa, Fla., team believes in doing things the right way: investing in their people, giving back to their community, and building something that lasts.

"It shows up in their culture, their retention, and in every customer interaction," Langston said.

Raising the Standard for the Industry

The Shop Excellence Awards were ultimately about more than recognition. They highlighted the operational habits, customer-first decisions, and team investments that move the entire industry forward.

At Tekmetric, that is exactly what Tektonic is built to celebrate: the shops leading by example and showing what great looks like.

"To all of our winners, and honestly, to every shop in this room, we know what it takes to do this well," Patel said in closing. "The standard you're setting is what moves this entire industry forward."

Join us at next year's Tektonic to hear their stories, see the strategies behind the numbers, and connect with the shop leaders shaping the future of auto repair.

Tekmetric Honors the Industry's Best at Tektonic 2026 Shop Excellence Awards

April 13, 2026

Read time: 3 min

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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.

How to set your mechanic 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:

  • Rent.
  • Utilities and shop supplies.

Step 3: Determine your desired profit margin

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.

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.

Setting Your Automotive Repair Labor Rate (5-Step Guide)

March 19, 2026

Read time: 3 min

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