Sunil Patel on How Tekmetric is Revolutionizing the Auto Industry

Your locations don't have an ARO problem. They have a consistency issue.

If you run more than one shop, you have a number you probably don't look at often enough: the distance between your highest-ARO location and your lowest. That spread isn't a meaningless number. It's a diagnosis — and it's usually pointing at something you can fix this quarter.

Seeing one shop consistently post a higher average repair order (ARO) — the average dollar amount per repair order — while another lags behind, month after month, tells you something useful and fixable — that the two shops aren't actually running the same playbook.

When identified, an ARO gap points directly at where revenue is leaking and which location can improve its bottom line. Here's how to read it, and how to close that gap.

What ARO by location actually measures

ARO is your total sales divided by your car count. On its own, a single shop's ARO tells you how much revenue you capture per vehicle. Compared across locations, ARO becomes a relative measure. It shows you which shops are upselling the customers they already have, and which ones are letting opportunities walk out the door.

That distinction matters because car count and ARO are different levers. A location can be busy and still underperform on ARO. When two of your shops see roughly the same number of vehicles but post meaningfully different ARO, the busier-but-lower shop isn't short on demand — it's short on execution somewhere between check-in and checkout.

Why the same brand produces different numbers

When you standardize on one brand, one sign, and one set of prices, you'd expect performance to converge. It usually doesn't, and the reasons tend to fall into three buckets.

1. Inspections aren't consistent

The digital vehicle inspection is where most ARO is won or lost. A location that completes thorough inspections on nearly every car — with photos and clear findings — surfaces more legitimate work and gives customers a reason to say yes. A location that treats the DVI as optional, or rushes it, never puts that work in front of the customer in the first place. Shops that consistently attach more photos and findings to their inspections tend to post a higher ARO than shops that don't, because customers can see the work rather than just hear about it.

2. Estimating and pricing drift shop to shop

If one location prices a job from an up-to-date matrix and another builds estimates by memory or old habits, you'll see the difference in ARO. The same brake job, quoted two ways, produces two different repair orders. Multiply that across every ticket, every day, at every location, and small pricing inconsistencies become a large revenue gap.

3. Workflow and presentation vary by advisor

How work gets presented — whether declined jobs are captured for follow-up, if good/better/best options are offered, and the customer sees the inspection before the phone call — all of it moves ARO. When those steps live in one advisor's head instead of in a standard workflow, they leave when that advisor does.

How to compare ARO across multiple locations

A useful ARO comparison starts with removing the excuses you can measure. Before you conclude a location is simply in a weaker market, line the shops up on the metrics that feed ARO. When you compare ARO across multiple locations, look at five things:

What to compare across locations

• Inspection completion rate: what percentage of cars get a full digital vehicle inspection (DVI) at each location.
• Photos and findings per inspection: whether the shop shows customers the work or just describes it to them.
• Close ratio: of the work presented, how much the customer approves.
• Declined jobs recovered: whether declined work is followed up over time or lost.
• Real-time reporting: whether you can see all of the above per location, side by side, without building a spreadsheet.

Those five inputs are what separate a high-ARO location from a low-ARO one. Walk them in order, per shop:

• Inspection completion rate — what percentage of cars actually get a full DVI at each location?
• Photos and findings per inspection — is the low-ARO shop showing customers the work, or just telling them about it?
• Close ratio — of the work presented, how much gets approved? A low close ratio points at presentation, not demand.
• Declined jobs — is the shop recovering declined work over time, or letting it disappear?

When you put those side by side, the ARO gap almost always resolves into a specific, coachable behavior at a specific location — not a vague "that store just isn't as good." The lowest-ARO shop with the weakest inspection numbers is usually your single, fastest opportunity because you're not trying to create demand — you're converting cars you already have.

You can't coach a gap you can't see

The hard part for most multi-shop operators isn't knowing that consistency matters — it's seeing the gap in the first place. When each location's numbers live in a separate system, a spreadsheet, or a manager's weekly recap, the comparison is always late and never quite apples-to-apples. By the time you notice a location has slipped, you've lost a quarter.

This is where running every shop on one platform changes the math. Tekmetric gives multi-shop operators multi-location control and real-time visibility: a portfolio-wide dashboard and shop-level reporting that track revenue, ARO, car count, and technician productivity across multiple locations at once. Instead of assembling the picture after the fact, you can see which location is drifting while there's still time to coach it.

"Now I can look at everybody at a glance. I can be in a different state, different city and know exactly what's going on in each location all the time. That's not something I had before."
— Leroy Ingram, Ooroo Auto Care (MSO)

Visibility is only half of it. The same platform lets you standardize the inputs that drive ARO — DVIs, canned and Smart Jobs, pricing matrices, and discounts — across every shop, so your best location's playbook becomes every location's default rather than a secret one store happens to know.

"Seeing [a newly acquired shop] take the shift from what they've always used to Tekmetric and then grow profitability in the same four walls has been phenomenal. Some of them are just exponential."
— Matt Schwab, Clutch Automotive (MSO)

Turning the gap into a plan

Once you can see the gap and its causes, closing it is a matter of focus. A few takeaways:

• Start with your lowest-ARO, lowest-inspection location. It's the biggest lever to pull and the fastest move to make because the demand is already there.
• Fix one input at a time. Get DVI completion up first; inconsistent inspections are the most common root cause of a lagging ARO.
• Make your best shop the template. Standardize its workflows, pricing, and inspection process, then apply them everywhere instead of hoping each store reinvents them.
• Watch the gap, not just the average. A rising portfolio average can hide one location sliding backward. The spread between best and worst is the number that tells you whether your standards are actually holding.

The gaps among your best and worst shops isn't a verdict on your locations. It's a map. It shows you exactly where the next dollar of ARO is hiding.

See the gap across every location

Tekmetric gives multi-shop operators multi-location control and real-time visibility into ARO, car count, and productivity across every store — plus the standardized workflows to close the gap.

Want to see where your shops stand first? The free Tekmetric Shop Index benchmarks your ARO, car count, parts margin, and effective labor rate against thousands of shops nationwide — no account required.

While it might not seem too obvious at first, there’s a unique opportunity for independent repair shops to enter the digital age. With the right tools for the job, auto repair shops can meet customer expectations at every step of the way, from texting inspection findings right to customers down to cardless payment options.

With the right features, independent auto repair shops can work faster, smarter, and more efficiently, while delivering the amazing customer service we’ve all come to expect.

If your shop isn't using at least one mark up matrix to get the most out of your parts sales, then you might be leaving a lot of money on the table.

In fact, auto repair shops have an amazing opportunity to maximize their profit margin on parts sales in particular. Especially when you consider the tools available to support and simplify the entire process. Gone are the days of using pen and paper or busting out the calculators.

Cloud-based shop management systems have made it easier than ever to not only manage your shop, but really get the most value out of the work you're already doing.

Using a parts matrix in particular is one of the most important aspects in making sure your shop is profitable. By building streamlined process for marking up parts, shops can ensure grow your shop’s profit margin while staying fair to customers.