3 Ways to Maximize Auto Repair Shop Profitability

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. 

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Tekmetric just revealed two new tools to help shops win more customers and run a more efficient front desk. Get the full story. Watch the on-demand webinar now.

Generating new business in auto repair is hard. The industry is projected to grow just 2% over inflation annually over the next five years. The average American has 15 auto repair shops within 10 miles of their home, according to Tekmetric's internal data, meaning competition for every new customer is fierce. And across multiple industry surveys, roughly two-thirds of drivers say they don't fully trust their local repair shop — making it that much harder to win them over. The result: only one in 10 shops both grows and hits profit margins of 20% or higher. 

"We know the competition to win new customers is fierce,” said Lauren Langston, president and COO, Tekmetric. “That means we need the right strategies and the right tools in order to do it."

Tekmetric's data shows that winning shops consistently focus on four outcomes: car count, average repair order (ARO), driver experience, and cycle time. Two new Tekmetric products — Tekmetric Digital Ads and Tekmetric Phones — are built to move the needle on all four.

Tekmetric Digital Ads

Winning new customers starts with being found. Tekmetric Digital Ads is an AI-powered add on that helps your shop show up where high-intent drivers are already searching for auto repair on Google Maps and Apple Maps. Because it connects directly to Tekmetric, you can see exactly how your ad spend translates into real revenue, not just clicks.

"It's really hard to see what's working. One of the superpowers of this product is that it's connected directly with Tekmetric," said Jared Haleck, chief product officer, Tekmetric.

Tekmetric Digital Ads is in early access now and rolling out to selected customers.

Tekmetric Phones

Every missed moment at the front desk has a cost. Tekmetric Phones gives your service advisors the customer context they need — instantly, the moment the phone rings — so they can spend less time looking things up and more time taking care of customers.

"Service advisors especially are loving it,” Haleck said. “It just saves them so much time. It creates so much convenience for them.”

Tekmetric Phones is in beta, available for customers on RingCentral.

Watch the On-Demand Webinar

Langston and Haleck walked through all of it — the industry data, live product demos, and what's coming next — in their webinar, "Building for the Results-Driven Repair Shop."

The recording is available now. If you want to see exactly how these tools work and what they can do for your shop, this is the place to start.

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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)

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

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

Lights and electrical

16. Headlights on low and high beam.
17. Taillights and brake lights.
18. Turn signals front and rear.
19. Hazard flashers.
20. License plate lights and dashboard illumination.
21. Reverse lights, fog lights, and daytime running lights.
22. Interior dome, map, and courtesy lights.
23. 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.
24. Battery voltage, terminals, and charge/discharge load test.
25. Alternator output and starter draw.
26. Ignition switch and accelerator pedal function.
27. Horn operation.

Tires and wheels

28. Check tire pressure on all four tires plus the spare.
29. Measure tire tread depth.
30. Check for uneven wear patterns that can point to alignment or suspension issues.
31. Inspect sidewalls for cracks, bulges, or embedded objects.
32. Check valve stems and caps for leaks or damage.
33. Review the tire DOT date code for age.
34. Verify wheel condition, lug nut torque, and hub cap security.
35. Check the spare tire, jack, lug wrench, and locking wheel lock key.
36. Confirm the tire pressure monitoring system (TPMS) is functioning.

Brake system

37. Check brake pads for thickness and wear patterns.
38. Inspect rotors for scoring, warping, or excessive wear.
39. Examine brake drums and shoes, if equipped.
40. Check brake calipers for sticking, leaks, or damaged boots.
41. Check brake fluid level and condition at the master cylinder.
42. Examine brake lines and hoses for cracks or leaks.
43. Test parking brake function and adjustment.
44. Evaluate overall brake pedal feel, travel, and pulsation.
45. Verify ABS sensors, wiring, and warning light operation.

Steering and suspension

46. Inspect the steering wheel for play and responsiveness.
47. Check steering column and intermediate shaft for looseness.
48. Check power steering fluid level and condition.
49. Examine tie rods and ball joints for wear.
50. Check struts for leaks or damage.
51. Inspect shock absorbers for proper dampening and leaks.
52. Check CV boots and axle shafts.
53. Inspect wheel bearings for noise or excessive play.
54. Inspect sway bar links, bushings, and control arms.
55. Look for uneven ride height or sagging that can indicate a failing spring.

Under the hood

56. Check the battery capacity.

57. Check engine oil level and condition.
58. Check the oil filter for leaks and proper seating.
59. Inspect transmission fluid.
60. Check coolant level, condition, and the cooling system for leaks.
61. Inspect brake fluid, power steering fluid, and washer fluid reservoirs.
62. Inspect the battery, cables, and hold-down hardware.
63. Examine the serpentine belt and any drive belts for cracks, glazing, or fraying.
64. Check all hoses for soft spots, swelling, bulges, or leaks.
65. Inspect the engine air filter and cabin air filter.
66. Check the fuel filter, if serviceable.
67. Inspect the PCV valve and evaporative emissions components.
68. Check the radiator and condenser fins for debris or damage.
69. Check engine and transmission mounts.
70. Look for oil leaks at the valve cover, oil pan, and gaskets.
71. Test the spark plugs and ignition components.
72. Inspect air intake.
73. Inspect fuses.

Under the car

74. Check the exhaust system for leaks, rust, and damaged hangers.
75. Inspect the muffler, resonator, and heat shields.
76. Inspect fuel system components, lines, and the fuel tank for leaks or corrosion.
77. Look at the transmission and differential housings for leaks.
78. Check the oil pan and drain plug for seepage or stripped threads.
79. Examine the frame, subframe, and undercarriage for rust or impact damage.
80. Check emissions-related components like the catalytic converter and oxygen sensors.
81. Inspect the driveshaft, U-joints, and center support bearings.
82. Verify skid plates and underbody shielding are secure.
83. Scan the ground under the vehicle for any fluid drips or leaks.

Interior and safety equipment

84. Test seat belts for retraction, fraying, and buckle function.
85. Confirm airbag and supplemental restraint indicators clear properly.
86. Inspect windshield wipers and wiper blades for streaking or splitting.
87. Test washer fluid spray on the windshield and rear glass, if equipped.
88. Inspect interior warning lights.
89. Check AC, heat, and all fan speeds.
90. Test front and rear defrosters.
91. Inspect infotainment displays and systems.
92. Test door locks, power windows, and the key fob.
93. Inspect driver-assist systems, backup camera, and parking sensors.
94. Inspect lane departure systems.

Road test

95. Confirm smooth engine start and stable idle.
96. Evaluate transmission shift quality and clutch engagement, if manual.
97. Test braking response, pedal feel, and stopping distance.
98. Listen and feel for suspension noise, vibration, or harshness.
99. Check cruise control and driver-assist system operation.
100. 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.

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.