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How Integrated Payments Help Auto Repair Shops Get Paid Faster

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Integrated payments help auto repair shops get paid faster by removing the steps between finishing a repair and collecting the money for it. When payments run inside the same platform as the repair order, the customer can pay from their phone the minute the work is done, the invoice closes itself out, and the day's totals reconcile without anyone rekeying a number.

What integrated payments actually means

Integrated payments means the payment function is built into your shop management platform rather than bolted on beside it. The repair order total flows straight to the terminal or the payment link. The payment posts back to that repair order. Refunds, disputes and deposits are handled in the same place you wrote the estimate.

A standalone processor works differently. Your advisor reads the total off one screen and types it into another. The two systems do not know about each other, so anything that connects them — the batch report, the deposit, the customer's payment history — has to be connected by a person.

That distinction sounds like a technicality. In a shop doing 20 cars a day, it is the difference between closing out at 5:15 p.m. versus 6:30 p.m.

Why the processing rate is the wrong place to start

Ask most owners what they pay to accept a card and they can tell you. Ask them how many days pass between a repair being authorized and the money landing, and it gets quiet.

Rate is worth negotiating. On high-ticket work it genuinely adds up, and any shop processing real volume should know whether they are on flat-rate or interchange-plus pricing and what that means for a $1,200 ticket. 

But rate is a percentage of money you have already collected. It does nothing about the money you have not collected yet. Cash flow is tight in this business — the average auto shop carries roughly seven days of cash on hand. At that margin, a week of delays costs more than a fraction of a percent ever will.

So start with the days, not the basis points for accepting cards and digital payments. 

The three places cash gets stuck

In almost every shop, delayed payment traces back to one of three bottlenecks.

1. The customer is not standing at your counter.

The work is done and approved. The customer is at their own job until 6 p.m. Someone has to be at the shop when they arrive, or the car sits overnight and the invoice sits with it.

Text-to-Pay solves this by sending the invoice as a secure link the moment the repair is finished. The customer opens it on their phone, reviews what was done, and pays. Because the invoice generates from the repair order, the advisor is not writing it up first. And because the payment posts back automatically, nobody has to remember to mark it paid.

Ron Rettig of Rettig Automotive Repair put it this way: "With Tekmetric Payments, my customers are paying online before I even finish the job.”

2. The repair costs more than the customer has today.

This is the expensive bottleneck, and it is not a payment problem. It looks like a declined estimate. A $2,400 job becomes a $700 job because that is what fits the customer’s budget this month, and the vehicle goes back on the road with the rest of the work unrepaired.

Buy Now, Pay Later changes the question from "can you cover this today?" to "can you cover this over a few months?" Tekmetric Payments includes Affirm, Klarna and Sunbit at checkout, and when Affirm and Sunbit are enabled, customers can pre-qualify inside the estimate link before they approve anything. The shop is paid on the transaction as normal. The customer carries the payment plan.

The effect on ticket size is not small. Shops that spread payments this way see up to three times higher ARO because customers say yes to the full recommendation instead of picking the cheapest line item on it.

Josh Anderson of Ideal Automotive on why financing mattered to them: "What really sold us on Tekmetric Payments was having financing built directly into our workflow. Our advisors can see everything in one place, and we can finally offer customers fair-term financing."

3. The day does not close cleanly.

The third bottleneck is not about collecting at all. It is about knowing what you collected. When payments live in a separate system, someone spends the end of the month cross-referencing batch reports against repair orders, hunting for the reason the bank deposit and the shop's sales record disagree by $340.

Usually the reason is a typo. An advisor keyed $1,050 as $150 on a busy Friday. With an integrated flow there is no keying, so there is no typo, and reconciliation runs in the background.

Jessica Butterfield at J&B Auto Service described what that gave back: "At the end of every month I go through and reconcile and Tekmetric has taken my process from hours down to just one hour." 

What to look for when you evaluate integrated payments

If you are weighing a move, these are the questions that separate real integration from a terminal sitting next to your computer.

  • Does the repair order total reach the terminal without anyone typing it? If not, you still own the error rate.
  • Does a completed payment close out the repair order on its own? Manual status updates are where invoices get lost.
  • Can you send a payment link by text and take a card on file for the next visit?
  • Is financing available at the estimate, not just at checkout? Pre-qualification before approval is what protects the bigger job.
  • How fast is funding, and how fast is setup? Tekmetric Payments offers same-day setup and next-day funding.
  • Are refunds, disputes and deposits handled in one place, or does each one mean calling a second vendor?
  • Does reconciliation happen automatically, or does it happen on someone's Sunday?

Andrew Klement at Finley River Auto & Diesel summed up the integration case in a sentence: "All in one place. All integrated. One support number to call when there's an issue."

What getting paid faster changes in your numbers

Faster payment is not a soft benefit. It moves things you already measure.

Turnaround time from check-in to payment gets shorter because the last step in the repair order stops waiting on a person's schedule. Average repair order goes up when financing is available at the moment the customer is deciding, rather than after they have already trimmed the estimate. And customer satisfaction improves for a reason that has nothing to do with payments technology: nobody enjoys standing at a counter after a $1,400 repair bill. Paying from the couch is simply a better end to the visit.

Negotiate your rate. It is real money. Then go look at the three bottlenecks, because that is where the larger number is hiding. Integrated payments shorten the distance between finishing a repair and being paid for it.

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Go Beyond an Auto Repair Receipt Template with Tekmetric

July 18, 2023

Read time: 3 min

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Were you looking for a vendor to reorder carbon copy auto repair receipt templates when you found this blog? Maybe you’ve already spent a few hours at your computer, searching for the right auto repair receipt template. But none of the templates you’ve seen looks right for your shop. It’s hard to find a perfect fit. You need a template that is fast to fill, inexpensive, flexible enough to work for any sale, and easy for you and your customers to understand. That’s a tall order.

But all too often, standalone templates fail to meet the complex business needs of modern auto repair shops.

You have already made positive changes toward getting organized by searching for and maybe even trying out a variety of new templates. But what if you could save time and improve accuracy with a system that did all the work of writing and tracking receipts for you?

Think about how you currently find the information you need for your receipts and fill them out. Maybe you use carbon copies. Maybe you type the receipts out. But you’re probably getting the information from your invoices, which themselves reflect estimates. That’s three documents to write per customer, which can quickly add up to a lot of time spent on paperwork.

Auto repair shop management systems are capable of populating receipts with payment information and prices from estimates and invoices in seconds to create consistent receipts and a more positive customer experience.

We know that change can be hard, but it’s worth it.

Let’s analyze some of the ways your current auto repair receipt templates might be holding you back and how an auto repair shop management system can improve your customer experience, simplify work at the shop, and lead to more business growth for you and your team.

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5 Design Ideas for an Efficient Auto Shop Layout

July 11, 2023

Read time: 3 min

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Your automotive shop is the beating heart of your business. A well-designed basic auto shop layout can streamline operations and refine your business.

When you plan to refresh your auto mechanic shop, consider how to make efficient use of your available space, enhance safety, refine the look and feel of the shop, and improve customer comfort.  Most of all, upgrading the technology that forms the backbone of your business is a major component of a modern auto shop. 

Manage space effectively

No matter how much square footage your shop has, you can maximize your layout to house everything you need. Consider the size and shape of your space before you commit to a specific layout. Evaluate the services you currently or intend to provide so you can plan your space safely and efficiently. 

Some of those considerations include: 

  • Equipment locations: Look at your  permanent installations, such as lifts and compressors as well as movable items.
  • Storage: Organize storage areas so parts and equipment are easily accessible and tidy, both making them easy to find and improving your shop’s appearance and parts storage.
  • Working areas: Set up your workbenches and counter space so technicians can perform detail work away from the vehicle. 
  • Loading bays: Verify your loading bay areas have adequate clearance.  
  • Waiting rooms: Design an appealing space so your customers have a clean, well-lit, and comfortable place to wait. 
  • Administrative offices: Make sure your employees have all the tools they need to keep the business running efficiently.  

Effective space management also plays a big part in keeping an auto shop safe. 

Tips for Running a Successful Auto Repair Shop

July 11, 2023

Read time: 3 min

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The automotive shop industry has grown tremendously between 2018 and 2023. It reached $59.1 billion in revenue, the result of a compound annual growth rate of .5%. Vehicle ownership drives a considerable amount of this growth, and it will increase through 2028.

This exciting, growing field offers tremendous potential for new auto repair shop owners. However, competition is fierce. Nurturing successful business growth comes down to running it optimally. In this guide, you’ll discover what you need to know about building an auto shop and how to thrive in this industry. 

How Do You Run an Auto Repair Shop?

Running a profitable auto repair shop long-term revolves around establishing solid relationships with your customers. Over 60% of customers say that they like to get their work done at the same shop, and 96% go to three or fewer locations when they need to get work done on their car. Gaining customer satisfaction through expertise and communication plays an important role in keeping your customers happy so that they return.

Proper auto shop management and best practices, such as improving productivity and rewarding loyal customers, keep your business competitive. Many strategies that strengthen your business will also incentivize customers and encourage them to return. Since customers do not want to go to numerous auto repair businesses, proving that your business is one they can rely on encourages this loyalty which strengthens your ROI.

To build a quality business, a business plan that emphasizes customer service and retention will take you far. You can incorporate a few central strategies into your plan to keep your customers happy.

Tekmetric Named Leader 5 Times in 2023 G2 Summer Spotlight Report

July 5, 2023

Read time: 3 min

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G2 is a peer-to-peer review site that scores different platforms and tools just like Tekmetric based on reviews from users, just like you.

Leveraging all the data, reviews and input they collect throughout the year, G2 analyses the results and announces the clear software leaders in a number of categories.

And Tekmetric was named a leader in not one, not two, but FIVE categories for Auto Repair Software, and has been awarded five new badges from G2 for their 2023 Summer Spotlight!

That means its.. TIME FOR SOME BURNOUTS! LETS GO!

Those five categories include:

  1. Auto Repair Software Momentum Leader 
  2. Auto Repair Software Small Business Leader
  3. Summer 2023 Auto Repair Software Leader
  4. Best Relationship With Users
  5. Easiest To Do Business With

Sorry for the humble brag, but honestly, this is all because of you, the users of Tekmetric!

Shop owner's, service manager's and technician's love for how easy Tekmetric makes it to run your shop is the star of the show here.

How Auto Shop Management Software Can Help You Safeguard Your Business

July 2, 2023

Read time: 3 min

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“Receipts.” We all know the literal meaning of this term—those pieces of paper or emails/texts a retailer sends you as proof of purchase, in case you want to exchange or return an item down the road.

In a casual sense, “receipts” also mean “proof” in the event of a dispute. For example, if your dog could talk and claimed he definitely did not steal the pizza from the picnic table, you could show him “receipts,” which could be a photo your astonished friend snapped of him while he was dragging the pizza away. Busted!

Ok, but in all seriousness, as a business owner, you interact with receipts in two ways:

  1. You give receipts to your customers once their repair work is finished
  2. You get receipts when you purchase items for your shop (like parts)

Even though receipts exist in practically every industry, there’s a huge difference between the receipts customers get from an auto repair shop versus the receipts they’d get from a restaurant or clothing store.

Look at it this way: you don’t go to a restaurant and get an estimate for how much your food will cost. You see the prices on the menu, order, and then pay at the end. But in the auto repair world, we have to scope out the work with an inspection and estimate. That’s where the shop and the customer come to an understanding of the repair work that will occur, and get a preview of the cost, before any work gets done.

Without a solid inspection and estimate process, there can be a higher risk of misunderstandings and miscommunications, which can diminish customer loyalty and lead to credit card chargebacks. For example, a customer could misunderstand the severity of the need for a repair and decline it when they get their estimate, and leave a negative online review that their car still has issues. Or, a customer could say they don’t want a particular repair, but a service advisor misunderstands them. The repair happens, and the customer is upset when they get the final bill because they’d communicated that they didn’t want the repair.

That’s why estimates and receipts are extra important in our industry—they protect shops and customers. They give your customers peace of mind; they have a record of what repair work they got done on which day, and how much they paid. And in the event of a customer claiming a certain repair didn’t happen on a particular day, you could pull up your copy of the estimate and the receipt and set the record straight. You won’t have to deal with a frustrating back-and-forth process that can stretch out for days.

But beyond literal receipts, there are other elements of safeguarding your business. After all, protecting your business isn’t just about protecting it from financial and legal standpoints, although those are two important areas. You also have to think about things like your team’s productivity, employee management, healthy margins, and more. Auto shop management software is a great core tool that can help you safeguard your shop from multiple angles.

How Switching from an Auto Repair Invoice Template to a Shop Management System Can Drastically Increase Profits

June 20, 2023

Read time: 3 min

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Auto repair shops might bulk order carbon copies, or you might find a template online and print as many copies as your shop needs. Or, if your shop uses digital templates, you might have to deal with time-consuming digital file management.

Filling out the forms over and over, be it by handwriting or typing, can become tedious. And both options are less than ideal for record-keeping.

Paper can get lost, and digital files can become overwritten or corrupted. Both approaches are inconvenient and ultimately slow things down at your shop. And the impression you give during the payment process can determine whether those customers return or not.

Here are four reasons why a shop management system is better than an auto repair invoice template approach for your business.

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Streamline Your Auto Repair Shop’s Workflow for the Best Customer Experience

June 19, 2023

Read time: 3 min

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By streamlining your auto repair shop workflow, you can help your shop create a memorable customer experience that will keep them coming back next time they have a problem.

From the moment customers walk in the door to when they pick up their vehicle, your shop’s service advisors play a crucial role in creating a smooth, enjoyable experience.

Shop management software makes it easy to establish a standardized intake process so that shops can provide the same level of care to their customers every single time.

Service advisors can build repair orders in seconds, apply the right digital vehicle inspection templates with just a few clicks, and quickly text or email the results to the customer for approval.

This frees up their time to focus on the customer directly, address their concerns, and create a stress-free experience. If things go well the first time, and customers feel like they can trust your shop's recommendations, work they'll more than likely come back for future repairs.

How to Sell an Auto Repair Business (3 Step Guide)

June 14, 2023

Read time: 3 min

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There are many reasons you might want to sell your auto repair shop.

You might be ready for another venture; you might be trying to fund your retirement; or you might just be curious about the value of your business if you do decide to sell. 

Whether you're actively in the market to sell your shop, or you just want to know how to value an automotive repair shop just in case, you’ve come to the right place.

How to value your auto repair shop

The industry standard for establishing a sale price for an automotive repair business is to use total owner benefit (TOB) multiplied by four (or TOBx4).

So, if you took home an average of $50,000 a year for the past three years, the price of your business will likely be valued around $200,000. Keep in mind this TOB value does not include property value.

For those who are reading this with the hopes of selling in the near future, that valuation method might seem low to you. And it is.

The good news is that you can go above and beyond the industry standard, and sell your shop for a higher value, if you stay on top of your numbers.

Not only will diligent reporting and good customer service increase your TOB, but you’ll also have more leverage when negotiating offers from buyers.

Here are three steps you can take to improve the valuation of your business and secure the money that you worked hard to earn. 

Improve Your Auto Repair Shop's Workflow With a Shop Management System

June 1, 2023

Read time: 3 min

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Maintaining an efficient workflow is crucial to the success of any auto repair shop. A breakdown in workflow can lead to delays, a frustrated team, and unsatisfied customers. One key area where workflow can break down is during the inspection and estimate process. 

By investing in a more modern, cloud-based shop management system, you can establish a transparent, replicable digital vehicle inspection and repair estimate process, and streamline parts ordering so that service advisors can dispatch repair orders quickly to technicians. 

Best Practices for Parts Management & Reconciliation

June 1, 2023

Read time: 3 min

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Parts management is a critical function of any auto repair shop business. The only way to guarantee that you’re making a profit on the parts you sell on repair orders is by having an air-tight system for managing and tracking those parts from purchase to sale to reconciliation. The final step of making sure that each and every parts transaction is accounted for is probably the most important step—and the most misunderstood.

Some of the issues your auto repair shop will run into if you don’t carefully manage parts include:

  • Un-billed parts (forgetting to collect payment on parts)
  • Inconsistencies between your cost of goods sold and accounts payable
  • Inability to track and receive return credits
  • Inability to detect theft before it gets out of hand

Many of these issues can be avoided by using purchase orders to reconcile the parts you sell on repair orders.

But many auto repair shop business owners still wonder what some of the best practices are when it comes to parts management. How often should you be reconciling parts payments? Who should take on this task: you, your service advisors, or a dedicated parts manager? How do you make sure you’re getting the best value for the parts you buy and sell? How do you ensure that each and every part is being billed?

Let’s answer some of these questions, and unpack the best practices for parts management.

The Biggest Benefits of a Modern Auto Parts Inventory Management Process

May 22, 2023

Read time: 3 min

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Inventory can include items like oil, tools, and large equipment. It also includes stock items, or parts which are sold to the customer during the course of repairs, such as gaskets and timing belts.

Inventory management and parts management go hand in hand, but outside of labor profits, the profit a shop brings in ultimately comes from parts markup at the point of sale. Consequently, there’s very little room for error in managing parts.

Simply put, mismanaged parts means money left on the table and unhappy customers—a combination no shop owner or automotive team wants to experience.

A good auto parts inventory management system should let you:

• Know what parts you have in stock and how many you have

• Track what sells and what sits on the shelf longer than it should

• Help you plan for growth.

With the right auto parts inventory management system, your shop can go from disorganized to a well-oiled machine generating more and more profit.