3 Ways to Maximize Auto Repair Shop Profitability

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May 30, 2024

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Read time: 3 min

From what we see, there’s a lot that shop owners get right. They understand how to lead their teams, grow their shops, and bring trust and transparency to their customers. But as a former trainer and franchise performance specialist, I do notice a lot of little inefficiencies that add up. 

Tekmetric touches every part of running your shop -- from managing customer information and measuring business metrics to facilitating digital vehicle inspections, repair order workflows, and even payment processing.

Because we have so much information available, we've collected and analyzed all that data at our fingertips to bring shop owners and general managers unique industry insights on how your shop can make the most money out of the work you already do.

1. Streamline Your Parts/Core Management 

One common thing I see at repair shops is an overflowing parts return shelf. Often those parts have a thick layer of dust from sitting there for months or even years.

When I see those full shelves, I see dollars (think of a cartoon character with dollar signs for eyes—that's me when I see these overflowing return shelves). Don’t let those dollars sit on your shelves; put them back in your pocket!

Here’s how. 

Set expectations with your team. 

When I worked in the shop, we had a 24-hour rule for returns. Unless there’s a specific reason, no part should stay on the shelf for more than 24 hours. We were so tenacious about parts returns that the delivery team members started catching on and checking the shelves without us even asking. 

Have a linear process for ensuring the returns are complete. 

A critical component of Tekmetric is the built-in core/parts return function. From marking a part “needing to be returned” to “refund complete” and confirming the credit on your parts invoice, having a tool that helps manage this process will help protect your margins.

Set a reminder. 

Put a reminder on your phone or computer for the last business day of the month to ensure that your parts shelf is clear. Tekmetric makes it easy to know which parts need to be picked up; just compare the Parts Purchased Report to the Parts Usage Report. If there are any parts, call those vendors and get them picked up! 

2. Track Your Marketing Sources

What does your marketing strategy currently look like? Maybe you’re paying for signs on the local high school’s baseball field, or ads in grocery store brochures. Or maybe you’re paying for billboards on busy roads, or sending out bulk mailers. 

No matter which marketing tactics you’re using, it’s vital that you track the return on investment for each campaign you roll out to maximize auto repair shop profitability. For instance, if you decide to spend $2,500 on a mass mailing campaign that features an oil change coupon, you should keep track of how many customers walk into your shop with that coupon.

After the coupon’s expiration date, you’ll know exactly how much revenue that mass mailing campaign generated for your shop. If the revenue wasn’t high enough, that’s a sign that you should try a different marketing tactic.

Tekmetric simplifies the process of tracking the ROI you’re getting from different marketing sources. Within Tekmetric, service advisors can select a custom marketing source for each and every customer. At the end of the month, or whenever you choose to end your campaign, you can look at the RO Marketing Source Report to see exactly where each customer came from.

After you figure out the best marketing tactics to get customers flowing through your garage, you can really rev up your auto repair shop profitability by having your team…

3. Leverage Digital Vehicle Inspections (Because Seeing Is Believing)

“Your coolant reservoir is trash!” the technician exclaimed. 

The customer in the lobby had wanted more details on why the shop was telling him he needed to pay $1,100 for the repair, so a young service advisor had brought in the technician to explain. 

That young service advisor was me. 

Oftentimes, telling someone that something is wrong with their car just isn’t enough to close the deal. Everyone is tightening their belts these days, and seeing an estimate for a couple thousand dollars can be really tough for many people to swallow.

However, when customers can actually see what they’re about to spend their money on, there is a significantly higher chance of them approving the repair.

The Tekmetric Difference

We see it time and time again: when shops start using Tekmetric’s built-in digital vehicle inspections (DVIs) to show customers the issues with their vehicles using photos and videos instead of trying to just explain the repairs in words, it builds trust, increases approvals, and boosts your shop’s Average Repair Order (ARO). 

You can try to explain a repair all day, but the truth is, seeing is believing.

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

FAQ

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Do you ever wish you could see into the future? As a business owner, being able to predict how much business you will get during a week, a month, or a year can help you make important decisions regarding marketing your services, taking on more work, hiring more employees, or even knowing when to expand your business.

Of course, there are always going to be unforeseen situations. No matter how much technology you have, there’s no surefire way to predict accidents, natural disasters, or other changes in life circumstances. Fortune telling aside, shop owners can use real-time reports to forecast the health of their business and get a sense of how much money their garage is expected to make before the end of a week, month, or year.

Here’s how you can leverage two of Tekmetric’s real-time reports in combination to forecast your shop’s performance and test the decisions you make as a shop owner.

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In the fast-paced world of auto repair, every minute counts, and your technician's time is your greatest asset. You’re not just managing a business—you’re orchestrating a complex balancing act of diagnostics, repairs, customer interactions, and team coordination. With so much on your plate, wouldn’t it be great if you had a tool that sped up the inspection process and created more customer trust? Well, your wish just came true.

Available for free across app stores, the Tekmetric Mobile App is designed to streamline your inspection process, boost productivity, and build stronger, more trusting relationships with your customers—all while putting more money in your pocket.

The Freedom to Do More, Right from Your Phone

In the world of auto repair, time is money. Every second your technicians spend away from their primary tasks, whether they’re running back to the computer to log information or trying to send and upload pictures, is time that could be spent actually working on vehicles. The Tekmetric Mobile App changes all that by bringing everything your technicians need right to their fingertips.

With the Tekmetric mobile app, your technicians can easily complete digital vehicle inspections directly from their phones (iPhone or Android). No more clipboards, no more back-and-forth to the computer. They can take high-quality photos and videos, accurately document vehicle conditions, and perform detailed inspections on the spot. It’s fast, it’s efficient, and it keeps your team focused on what they do best—repairing cars.

Cut Time Spent on Inspections in Half

The Tekmetric Mobile App isn’t just a convenience; it’s a productivity powerhouse. It streamlines the inspection workflow, allowing your technicians to move seamlessly from one task to the next without skipping a beat. The app’s intuitive interface means there’s no steep learning curve—your team can start using it immediately, saving valuable time from day one.

Imagine the impact on your shop’s efficiency when your technicians are no longer bogged down by administrative tasks. Inspections are completed faster, data is recorded more accurately, and your team is free to focus on getting vehicles back to their owners quickly. This increase in productivity means more cars serviced each day, which directly translates to more revenue for your business.

Increase ARO by adding photos

Trust is everything in the auto repair industry. Your customers need to know that they can rely on you for honest, accurate assessments of their vehicles. The Tekmetric Mobile App helps you build that trust by making it easier than ever to communicate with your customers.

With the app, your technicians can document vehicle conditions with detailed photos and videos, giving your customers a clear, visual understanding of any issues. Instead of just telling them what’s wrong, you can show them. The Tekmetric mobile app takes this to the next level with its photo markup feature, allowing your technicians to visually pinpoint exact issues on the images without slowing down. This transparency not only helps customers feel more confident in your recommendations, but it also fosters long-term relationships based on trust and satisfaction.

When your customers see that you’re being upfront and thorough, they’re more likely to approve necessary repairs and keep coming back to your shop in the future. The Tekmetric Mobile App helps you build that kind of loyalty, one inspection at a time.

Boost Monthly Revenue by $15k

At the end of the day, your shop is a business, and like any business, profitability is key. According to the 2023 Industry Index, Tekmetric shops who add an average of 25 photos and videos to their inspections see their ARO increase to $2500. The Tekmetric Mobile App is designed to help you accomplish just that. You can maximize your earnings by enhancing efficiency and customer satisfaction.

Faster inspections mean more vehicles can be serviced in a day, which leads to increased revenue. Additionally, when customers trust your assessments and feel confident in their decisions, they’re more likely to approve additional services, further boosting your sales. And because the app improves documentation accuracy and reduces the chance of errors, you’re also protecting your shop from costly misunderstandings and disputes.

The Future of Auto Repair is Here—And It’s Free

The Tekmetric Mobile App is more than just a tool; it’s a game-changer for auto repair shops of all sizes. It’s designed to fit seamlessly into your existing workflow, enhancing every aspect of your inspection process while saving you time and money. And the best part? It’s completely free to download and use.

Whether you’re managing a single location or multiple shops, the Tekmetric Mobile App is ready to help you take your business to the next level. It’s intuitive, powerful, and it’s available right now in your favorite app store.

Ready to Transform Your Shop?

Don’t let inefficiencies and outdated processes hold your shop back. The future of auto repair is here, and it’s as simple as downloading an app. Start improving your productivity, building stronger customer relationships, and increasing your profits today.

Learn more about the Tekmetric Mobile App Today. Your team will love it, your customers will appreciate it, and your bottom line will thank you.

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At the end of the day, customers want to feel like they can trust your shop, they know they'll be taken care of, and you're only doing the repairs that are most necessary.

On the other hand, your shop wants to bring in as much business as possible, and generate as much revenue as you can with the time and resources available to your team. That's made possible with the right tools for the job, streamlined and efficient processes, and transparent communication with your customers.

Better operations means smooth repairs, smooth repairs means happier customers, and happier customers means more business.

When your shop is trying to run like a well-oiled machine, any breakdown in workflow can lead to delays, a frustrated team, and unsatisfied customers.

For example, if a customer's repair takes longer because the part you thought you had in stock is actually on back order, they're going to be less likely to return.

That's where shop management software comes in. Just any other tool in your shop, there will be a return in your investment.

What if we told you that you can get even more value out of the work you already do with the right processes in place?

Top 3 Benefits of Auto Repair Shop Management Software

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